However, SOFAZ forecasts to saving in expenditures in 2016 due to 48% devaluation of manat against USD on December 21: “According to decision of the Fund’s Supervisory Board, the draft budget submitted to the president for approval, fund’s budget expenditures for 2016 made AZN 8,261,400,000 or $ 7,868,000,000 in accordance with the rate of AZN 1.05 (as of the submission date). Fund’s expenditures of $1,869,100,000 for funding the Southern Gas Corridor and Baku-Tbilisi-Kars projects in 2016 are planned to be carried out only in USD. In connection with this, the devaluation may only lead to savings when the expenditures and state budget transfers are executed in manat. So, as the expenditures to be executed in manat prior to devaluation made AZN 6,300,900,000 or $6,009,300,000, after devaluation, saving in these expenditures are forecasted to make $4,065,100,000 and in the Fund’s expenditures $1,944,200,000”.
The devaluation in February 2015 led SOFAZ to save $3 bln. So, the conversion of AZN 10 bln to transfer to the state budget required $10 bln after devaluation, while it was requiring $13 bln prior to February devaluation.
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