While low energy revenues have forced Azerbaijan's government to cut back in recent years, a recovery in energy prices is allowing Baku to start spending more – including on one of its highest priorities, the military. It remains unclear, though, what Azerbaijan intends to spend the money on.
The state budget formally adopted in December envisages an oil price of $45 a barrel, up from last year's figure of $40.
Baku's budget is highly dependent on oil prices: Vahid Ahmadov, MP and deputy chairman of Parliament’s committee on economic policy, said during this year's budget discussions that a $1 drop in the price of oil costs the state budget 13 million Azerbaijani manats, or $7.6 million at the current exchange rate.
To read the full story