Finance

Home page

Finance

Azerbaijani Parliament approves amendments in state budget for 2011

27 May 2011 11:55 (UTC +04:00)

According to APA, Economic policy committee chairman of Milli Majlis Ziya Samadzadeh noted that, the successes in economic sphere were incentive for formation of state budget. GDP growth was provided, strategy on development of non-oil sector is being implemented, CBAâ€™s measures on improvement of Balance of Payments yield positive results.

He noted that, GDP was $ 41.6 bln in 2010: â€œAzerbaijan approached the developed countries in per capita output production. Currency stocks exceeded $30 bln. Cash income exceeded the consumption prices by twiceâ€.

â€œAt the same time, there are problems in formation of budget revenues. Tax debts to the budget are sufficiently high. The works in this sphere must be strengthened. If strengthen the control to signing of labour contracts, the tax incomes will be increased, at the same time the number of unemployed persons will be decreasedâ€, he added.

He also noted that, the customs exemption might be reviewed. Otherwise, the situation of local economy will be difficult.

Ministry of Finance Samir Sharifov explained all execution performances of budget. He noted that, the budget revenues for 2010 made AZN 11,402.5 mln, expenditure â€“ AZN 11,766.0 mln, while the forecast was AZN 11,505.0 mln for budget revenue, AZN 12,275.3 mln for expenditure. As you see, the forecasted was underfulfilled by 0.9% for revenue, 4.1% for expenditure.

AZN 4,292.8 mln of budget revenue came from Ministry of Taxes, AZN 1,101.7 mln from State Customs Committee, AZN 5.4 mln from State Committee for Property Issues, AZN 5,915.0 mln rom SOFAZ, AZN 87.6 mln from other incomes.

About expenditures, AZN 794.3 mln of state budget went to common state services, AZN 1,185.2 mln to judicial authority, law-enforcement and prosecutorâ€™s office, AZN 1,181.4 mln to education, AZN 429.4 mln to health, AZN 123.0 mln to social protection and social maintenance, AZN 168.4 mln to operation in culture, art, information, and other spheres not concerning to other categories, AZN 199.9 mln to community, AZN 382.1 mln to agriculture, forestry, fishing, hunting and protectin of environment, AZN 4,147.0 mln to industry, construction and minerals, AZN 55.1 mln to transport and communication, AZN 115.9 mln to economic activity, AZN 1,325.8 mln to services not concerning to main sector.

Thereafter, Sharifov gave information about the amendments made in budget-2011. The minister said that state budget for 2011 was increasing at the amount of AZN 3,493.2 mln. After this growth, incomes of state budget-2011 will make AZN 15,554.2 mln, up 29% compared to the confirmed prognosis. AZN 770 mln of growth of budget incomes will be provided from taxes and customs revenues, 2.7 bn from State Oil Fund.

Expenses of the state budget-2011 make AZN 15,941.2 mln, by rising AZN 3,193.2 mln or 25% compared to annual budget expenses confirmed for 2011. After the growth, 48.4% or AZN 7,716.5 mln of the expenses will concern current expenses, 49.9% or AZN 7,878.0 mln - capital expenditures, 2.2% or AZN 346.7 mln â€“ expenses related to public debt services.

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.

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 minister noted that the price of oil used in the calculation of state and consolidated budget in the project submitted to the parliament was reached to $80 per barrel, by rising $20.

Thereupon, chairman of the Accounting Chamber delivered speech and highly assessed the fulfilment of last yearâ€™s budget.

The MPs expressed their opinions and offers on this issue. Both documents were approved by the majority of voices.