Effectiveness of fiscal policy in oil-rich countries: the case of Azerbaijan

Abstract

Fluctuations in energy prices can pose a threat to the economic stability and growth targets of resource-rich countries. It becomes inevitable for the country to face macroeconomic problems when the state does not use its fiscal policy effectively, the budget is dependent on oil and natural gas revenues, efficiency in production, and therefore the efficiency in tax policy cannot be achieved. As seen in the case of Azerbaijan, state investment projects and the steady growth and development of the economy depend on energy prices. How the stability in the economy can be achieved regardless of oil prices has been accepted as the main question of the thesis subject. Keywords: Public Budget, Fiscal Policy, Oil Revenues, Economic Stability, Azerbaijan