The Milli Majlis committees for defence, security and counter-corruption, for law policy and state-building, for natural resources, energy and ecology, for agrarian policy, for human rights, for international relations and interparliamentary contacts and for regional affairs held a joint online meeting to discuss the first reading of the 2021 State Budget of the Azerbaijan Republic Bill on 23 December.

Chairman of the Defence, Security and Counter-Corruption Committee Ziyafet Asgarov noted whilst opening the meeting that the year 2020 had been inscribed upon the pages of the glorious statehood and independence history of the Azerbaijan Republic as one in which the national territory had been made whole again and a brilliant military-political victory had been achieved over Armenia under the guidance of President and Commander-in-Chief Ilham Aliyev. Having reconquered what are truly its lands, our country passed a new progress milestone. So, now, the state authorities are facing the crucial tasks of restoring and rebuilding the liberated provinces, creating social, economic, energy, utility and transport systems in them and providing living and working conditions for our compatriots when they go back to their homes.

At the same time, the passing year is remembered as a year of combat against the coronavirus pandemic. There has been a string of fundamental preventive and treatment measures and moves in Azerbaijan. Our country has provided the World Health Organisation and more than 30 countries with the aid totalling at US$10 million. The president of Azerbaijan had proposed a special session of the United Nations Organisations and such a session, marked by extensive exchanges of opinions about ways to control the pandemic, was held in October with Mr Aliyev having spoken at it both as the president of Azerbaijan and on behalf of the Non-Aligned Movement uniting 120 member-states. He told the participants of that session of Azerbaijan’s contribution to the common cause and made a point of stressing that the vaccines should be distributed equally amongst the countries suffering from the pandemic. That UN session demonstrated once more the steadily growing role of Azerbaijan in the system of international relations.

Further, Mr Asgarov informed the assembly of the parameters of next year’s State Budget, saying that its revenues had been planned to reach AZN 25.4 bn, which would be AZN 1.3 bn or 5.4% higher than forecast for the current year, and the expenditures should amount to AZN 28.5 bn with an increase by AZN 1 bn or 3.8% compared with 2020.

The following are the 2021 State Budget priorities that were mentioned at the meeting: restoration of the de-occupied territories of the country, a continued strengthening of the national defence potential, and mitigation of the adverse effects of the pandemic. The current and capital expenses of the 2021 State Budget would constitute 63.1% and 29.2% of the total expenditure respectively; a further 7.7% of the aggregate will be spent on servicing the state debt.

The defence and national security spending is set at AZN 4 bn 586 mn; this will be AZN 781.5 mn more than the projection made for 2020.

The topmost priority, namely, the large-scale work that needs to be done to restore and rebuild the lands having been occupied for almost 30 years and then freed thanks to the Patriotic War of the Azerbaijani nation in 2020, is well accounted-for in the staple spending items of the Budget. The same applies to the challenges that the pandemic put before the world and Azerbaijan – including the current economic situation in the world and the associated trends.

Towns and villages must be rebuilt and modern infrastructure inclusive of electrical energy, telecommunication and road grids and natural gas/water distribution networks be installed in those freed areas so the people can go back there. Also, it is necessary to establish educational and cultural facilities, health care centres, utilities and other infrastructure. The monuments of culture and history need restoring; residential buildings need re-erecting. It is planned to allocate AZN 2.2 bn from the State Budget towards the costs of all that and other related ends.

The social expenditure is forecast to equal AZN 11.1 bn – AZN 563.8 mn or 5.3% more than in 2020. The spending items concerned with sciences and education are set at AZN 183.3 mn and AZN 3 bn 278 mn respectively whilst the education spending should be AZN 242.9 mn or 8% higher than this year and the health care allocation of 2021 must reach AZN 1 bn 409 mn.

Further, the agricultural expenditure plan for 2021 suggests AZN 943 mn, which represents an increase by AZN 45.4 mn or 5.1% compared with the corresponding allocation made this year.

It is planned to allocate AZN 2.1 bn (AZN 500 mn or 31.3% more than in the expiring year) on the special-importance defence projects and activities, enhancing the defence potential of the country and the continued improvement of the Armed Forces’ logistics, according to Mr Asgarov.

Following the presentation by Mr Asgarov, Chairman of the Committee for Economic Policy, Industries and Enterprising Tahir Mirkishili offered several ideas about the State Budget Bill. In his opinion, Azerbaijan will start the 2021 with economic growth and favourable trends and there should be a 3.4% GDP growth as well as a higher price of crude oil than now during the coming year. The crude oil price underlying the 2021 Budget projections is US$40 per 1 barrel and gives a good reason to ascertain that the new budget will be more stable. Mr Mirkishili then cited the clean-cut budgetary risks specified in the document in hand before remarking that the stipulation in it of the monetary and of the fiscal and budgetary policies provided for a more in-depth analysis.

Bringing up the serious challenges that the Azerbaijani State will come up against during 2021, Mr Mirkishili clarified that steps to combat the pandemic was one of them. The general forecasts indicate that vaccination is set for March-April next year. Well, both the economy and the budget of Azerbaijan are ready for that. Besides, the coming year will be especially important economically as new relations between the state and the private sector will be forged during it.

The overall opinion of the committee is that the Budget is acceptable and affords substantial sources of finance and opportunities to fulfil all the tasks that the president of Azerbaijan put before the state and the society, in Mr Mirkishili’s opinion.

Minister of Finance Samir Sharifov who was attending the meeting spoke of the importance of continuing this year’s budget policy in 2021. The budget spending should be yet greater to generate an added momentum behind the national economic growth and, especially, to reanimate economic activities and support business operators, in the minister’s view. The coming year is bringing serious tasks to carry out. It is required to lay a certain financial foundation for the intended restoration of the liberated territories of the country and to make the Army yet more powerful. At the same time, the continued implementation of social programmes, continuing and enhancing the republic’s international activities as well as education, culture and other sectors need financing, too, Minister Sharifov pointed out.

He informed the participants of the meeting of the basic parameters of the 2021 State Budget in detail and then said that it was going to be a historic budget because ‘we are presenting the budget of a state that has achieved a victory’. First of all, this budget ought to clear the displaced compatriots’ path leading back to their homeland and make certain the appropriate infrastructure is created and jobs are opened in it. On the other hand, this is the kind of budget to intensify the public social security, raise the living standards and provide the finance required to maintain the national security.

The committee chairmen Siyavush Novruzov, Samad Seyidov, Sadig Gurbanov and Tahir Rzayev as well as the MPs Hikmat Mammadov, Kamran Bayramov, Sattar Mehbaliyev, Nigyar Arpadarai, Elman Nasirov, Aydin Mirzazade and Asim Mollazade shared their views on the 2021 State Budget Bill during the deliberations.

Minister of Finance Samir Sharifov shed light on the several issues pinpointed by the MPs after that.

It was recommended at the end of the meeting that the 2021 State Budget of the Azerbaijan Republic Bill should be submitted for the first reading at a plenary sitting of the Milli Majlis.

The Press and Public Relations Department
The Milli Majlis