Baku: ‘The profitability of state-owned enterprises in Azerbaijan should be increased, and subsidies should be reduced,’ APA-Economics reports. This was stated in the report of the International Monetary Fund’s (IMF) mission on Azerbaijan.
According to Azeri-Press News Agency, the report highlights the need for medium-term fiscal consolidation, which is deemed appropriate for ensuring intergenerational equity and strengthening the country’s external resilience. The IMF mission suggests that a clear and comprehensive strategy focused on identifying specific revenue and expenditure measures will bolster the credibility of fiscal consolidation efforts.
The document stresses the importance of continuing reforms aimed at boosting the profitability of state-owned enterprises and reducing the subsidies they receive. Additionally, it identifies the optimization of tax exemptions, along with the enhancement of tax administration and discipline, as priority areas for reform.
The IMF’s assessment indicates that implementing these measures will aid in reinforcing the sustainability of public finances and maintaining macroeconomic stability.