Since 1996, the Azerbaijani government has emphasized privatization as a means towards consolidation of the public debt and revitalization of the economy. Over 70% of all parastatals are set to be privatized; more than 20,600 companies were privatized during 1997 and 1998. Foreign investment was encouraged, especially in the oil sector, however the diversification needed for long-term growth is lacking. The budget deficit in 2001 was a mere 0.5% of GDP.
The US Central Intelligence Agency (CIA) estimates that in 2001 Azerbaijan's central government took in revenues of approximately $786 million and had expenditures of $807 million. Overall, the government registered a deficit of approximately $21 million. External debt totaled $1.4 billion.
The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.
|REVENUE AND GRANTS||100.0%||786|
|General public services||6.0%||48|
|Public order and safety||11.3%||91|
|Recreation, cultural, and religious affairs||1.3%||10|
|Economic affairs and services||8.5%||69|