VOL. XLV

No 50

16-December-2002

 

CASPIAN

 

Kazakhstan 2003 Budget Based On Oil Price Of $21.20/B, Azerbaijan On $19.50/B

 

Kazakhstan’s 2003 draft budget has been based on an oil price assumption of $21.20/B. The government has put expected revenues at 621.6bn tenges ($3.98bn) and planned expenditure at 704.4bn tenges ($4.51bn). GDP is expected to be 4,144bn tenges ($26.51bn). The budget deficit is therefore around 2% of GDP and the government plans a deficit at this level for the next three years.

 

The government of Azerbaijan has tightened its fiscal policy for 2003, reducing its target deficit to 1% of GDP from an expected 1.2% of GDP in 2002. The 2003 budget is based on an oil price assumption of $19.50/B. While the government aims to balance its budget in the medium term, this is thought to be unlikely due to expectations of falling oil prices after 2004 and the overdependence of state funds on oil revenues.

 

Crude Oil Export Prices for Selected Oil-Producing Countries

 

 

 

Budget Oil Price Assumption*

 

Actual

Oil Price

 

 

Country

2003

$/B

2002

$/B

 2001

$/B

2000

$/B

 

2001

$/B

2000

$/B

 

Fiscal Yr

Algeria

19

22

22

28.8

 

 

 

Calendar Yr

Azerbaijan

19.50

-

-

-

 

 

 

-

Bahrain

 

15-18

15-18

-

 

 

 

Calendar Yr

Indonesia

¹22

22

24

28.8

 

 

 

Calendar Yr

Iran

 

18-19

20

25.0

 

 

 

21 Mar-20 Mar

Kazakhstan

21.20

-

-

-

 

 

 

-

Kuwait

 

15

15

25.9

 

20.7

25.1

1 April-31 Mar

Mexico

17

²15.50

18

-

 

 

 

Calendar Yr

Nigeria

21

18

22

28.5

 

 

 

Calendar Yr

Norway

24.30

20.88

22.30

-

 

 

 

Calendar Yr

Oman

 

18

18

26.6

 

 

 

Calendar Yr

Qatar

 

16

15

27.6

 

 

 

1 April-31 Mar

Russia

21.50

18.50

-

-

 

 

 

Calendar Yr

Saudi Arabia

18

15.50

20-21

25-27

 

 

 

Calendar Yr

Sudan

20

-

-

-

 

 

 

-

Syria

20-24

20-24

24

25.0

 

 

 

Calendar Yr

Venezuela

17-18

18.50

20

26.3

 

 

 

Calendar Yr

Yemen

21

18

22

28.2

 

 

 

Calendar Yr

 

 

 

 

 

 

 

 

 

Source: MEES.

* Budget oil price assumptions are based on the price of export crude.

¹ Revised upwards from August draft budget oil price assumption of $20.50/B.

² Price assumption revised down to $15.50/B from $17/B.