SOFAZ budget for 2017 approved

The budget of Azerbaijan's sovereign wealth fund SOFAZ, which accumulates and manages oil and gas revenues of the resource-rich country, was approved by a presidential decree dated January 10.

The decree approves SOFAZ revenues for 2017 at about 8,371 billion manats ($4,635 billion) and expenditures at about 14.5 billion manats ($80.29 billion).

In the SOFAZ incomes, revenues from the sale of profitable oil and gas are forecasted at about 7,551 billion manats ($4.181 billion), acre payments are forecasted at 3.465 million manats ($1,92 billion), income from oil and gas transit through the territory of Azerbaijan is expected to amount to 16.83 million manats ($9.32 million).

In addition, revenues of the Fund from the placement and management of assets are forecasted at roughly 799,095 million manats ($442,506 million). Bonuses paid by investors within oil and gas agreements, or in connection with their implementation are forecasted at 495,000 manats ($274,110).

Transfers worth 7.5 billion manats ($4.15 billion) to the Central Bank of Azerbaijan in order to ensure macroeconomic stability in the country will be the largest expenditures of the Fund. Its transfers to the state budget of Azerbaijan will hit 6.1 billion manats ($3.378 billion).

Expenditures for the improvement of living conditions of refugees are forecast at 90 million manats ($49 million), expenditures for the reconstruction of the Samur-Absheron irrigation system are forecast at 70 million manats ($38 million), costs within the BakuTbilisi-Kars railway construction project will amount to 165.825 million manats ($91.82 million), costs for financing the state program on education of Azerbaijani youth abroad in 2007-2015 will be 29.304 million manats ($16,227 million).

In addition, the State Oil Fund’s budget for the next year provides for the expenditures for financing the state’s share in the Southern Gas Corridor projects worth 496.155 billion manats ($274.75 million).

Costs of the Fund management are approved at 32.572 million manats ($18.03 million).