BAKU, Azerbaijan, November 4. Fiscal policy
isn’t expected to have a significant impact on inflation in
Azerbaijan, the Governor of the Central Bank of Azerbaijan (CBA)
Taleh Kazimov said today during a meeting of the parliamentary
Committee on Economic Policy, Industry and Entrepreneurship, where
the draft law "On the State Budget of Azerbaijan for 2027" was
discussed.
“We view the macro-fiscal framework presented for 2027 and the
medium term positively,” the CBA chief remarked.
He noted that the conservative growth and optimization of state
expenditures, the gradual reduction of oil transfers, an increase
in the share of non-oil sources within budget revenues, as well as
the maintenance of the budget deficit and public debt at manageable
levels, serve to strengthen fiscal sustainability.
"We believe that enhancing the efficiency of budget expenditures
will contribute to an improvement in the fiscal multiplier.
Despite the temporary rise in global oil prices, we view the
adoption of a conservative oil price assumption for 2027 as a
positive step. Reducing dependence on oil revenues is of great
importance, given the decline in production and the long-term
uncertainties in energy markets.
It’s expected that the budget deficit in 2027 will also be
financed primarily through domestic and external borrowing. In
light of this, fiscal policy isn’t anticipated to have a
significant impact on inflation," he added.
