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Azerbaijan increases state budget expenditures by 25%

19 May 2011 11:53 (UTC +04:00)

Finance Ministry told APA that main substance of amendments to be made in accordance with the order of the President is the realization of strengthening of populationâ€™s social protection, continuation of reforms in pension system, increasing of wages of workers engaged in organizations financing from the state budget, establishment of additional financial support for financing of social pension and pensions, as well as several social investment and infrastructure projects.Financial potential of the abovementioned measures and projects is estimated at AZN 3.1 bn.

Due to the fact that the market price of oil has long been an 80% higher than the figure laid down in the state budget in the first quarter of 2011, additional budget revenues amounted to AZN 193.5 mln, the State Oil Fund â€“ AZN 976.4 mln.

Taking conjecture in world oil markets into account, additional incomes are expected to enter the state budget for 2011 and SOFAZ.

Price of a barrel used in calculations of state and review budget in the project submitted to the Parliament has been reached to $80. Note that, this indicator was $60 in the state budget confirmed for 2011.

In accordance with it, incomes of state budget were soared AZN 3,493.2 mln. After this increase, incomes of state budget for 2011 will make AZN 15,554.2 mln, up 29% from a confirmed forecast. AZN 770 mln of state budgetâ€™s incomesâ€™ growth is considered to provide on the account of taxes and customs revenues, AZN 2.7 bn â€“ transfer of SOFAZ.

Basing on the draft amendments, expenditures of state budget for 2011 made AZN 15,941.2 mln by rising AZN 3,193.2 mln or 25%. Of these, 48.4% or AZN 7 716.5 mln was ongoing, 49,4% or AZN 7 878.0 mln - capital expenditures, 2.2% or AZN 346.7 mln - costs associated with servicing debt.

With the revision of the budget for the current year, AZN 462.7 mln or 66,3% from AZN 698.0 mln envisaged growth of current expenditure will be made to reform the pension system, as well as to finance the costs of salaries, social benefits and pensions employees of organizations financed from the state budget, and receiving financial assistance (education, science, health, culture, etc.), military personnel and etc.

On public capital investment will be directed 77,8% or AZN 2 484.1 mln additional costs that 73.5% more of the approved rate. Funds will be used for the repair of damaged schools and on-going repairs, construction of dormitories for students, a project of gasification of towns and districts of the country, improved electricity, water and sanitation, etc.
Through additional revenue AZN 300.0 mln will be reduced by the amount of funds allocated for financing budget deficit (AZN 687.0 mln).

The revision of the upper bracket of the consolidated budget (the consolidated budget combines the amount of income and expenditure of the state budget, the budget of the Nakhchivan Autonomous Republic, the budget of the State Social Protection Fund and the State Oil Fund, as well as on external debt) will make AZN 18 634.3 mln, the consolidated surplus Budget â€“ AZN 1 368.5 mln.