Transparency initiative annual report

State budget revenues

• 
  Centralised revenues
  
• 
  Local revenues
  
• 
  
  

State budget deficit

/surplus

State budget expenditures

• 
  Centralised revenues
  
• 
  Local revenues
  

Consolidated budget - financial document reflecting revenues and expenditures of the State Budget, the budget of the Nakhchivan Autonomous Republic (including off-budget operations), and extra-budgetary state funds on the paragraph level according to the functional and economic classification. ¹³
Table 2: The structure of Consolidate Budget of the Republic of Azerbaijan is as follows ¹⁴:

The Structure of Consolidated Budget
The structure of consolidate budget	The structure of consolidated budget expenditures	The deficit of consolidated budget and its funding sources
State budget revenues	State budget expenditures	Internal and external borrowing
Budget revenues of the State Social Protection Fundi	Budget expenditures of the State Social Protection Fund	Proceed from privatisation
Budget revenues of State Oil Fund	Budget expenditures of State Oil Fund	Foreign grants
Revenues of the budget of the Nakhchivan Autonomous Republic	Expenditures of the budget of the Nakhchivan Autonomous Republic	Single treasury account balance
Receipts for projects financed by foreign loans	Expenditures for projects financed by foreign loans

The budget of Nakhchivan Autonomous Republic is established by the Constitutions of Azerbaijan Republic and Nakhchivan Autonomous Republic, by this Law and other legislative acts.

Local self-governance principles, formulated in accordance with the status of the implementation of the municipal budget outline the municipal powers, which are defined by the Constitution and laws of Azerbaijan Republic in order to ensure the appropriate implementation of available financial resources. The formation of local budget funds for municipalities is regulated by law № 772-IQ "On the basics of municipal finance", signed on 7 December 1999.
The revenues of local budgets are formed from the following taxes:

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  land tax from individuals;
  
• 
  property tax from individuals;
  
• 
  the mining tax on construction materials of local importance;
  
• 
  income tax , municipal owned enterprises and organisations;
  
• 
  and other raxes.
  

Information about other revenue-generating sources for municipalities is included in the law № 772–IQ “On the basics of municipal finance”.¹⁵

The revenues generated from extraction of oil, gas and other mineral resources are not directly included in the budgets of local municipalities located on the territory of these deposits.

Figure 2: The relationships of exctractive industry and State budget ¹⁶