Rashad Hasanov, Director of Spektr Center for Research and Development discussed the main objectives of fiscal policy in the post-oil era, implementation of the fiscal rules and mid-term expenditure framework issues on ARB 24 TV.

A number of important measures have been taken to adjust fiscal policy with the new challenges in the post-oil era in Azerbaijan.

1. Amendments to the Law on Budget System, new provisions on the application of fiscal rules.
2. The approval of the Rules on the implementation Medium-Term Expenditure Framework has been approved.
3. A medium- and long-term strategy for public debt management has been approved.

The fiscal rule applied in the country is a combined rule. İt is intended to target both the consolidated budget’s non-oil primary deficit and the upper limit of the consolidated budget expenditure.

Under the new fiscal rule applied in the country:

– The projected upper limit of consolidated budget expenditures for the next year and the next three years may not exceed 103% of the consolidated budget expenditures of the current year.

– The consolidated non-oil primary budget deficit ratio of the non-oil GDP for the next fiscal year is intended to be less than the relevant figure of the current year. Otherwise, the projected upper limit of consolidated budget spending is reduced accordingly. The medium-term targets for the consolidated non-oil primary budget deficit ratio of the non-oil GDP are set by the Ministry of Finance.