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Center for Strategic Studies: Average growth rate of revenues and expenses of Azerbaijanâ€™s state budget exceeds 40% in 2003-2010

21 June 2011 13:45 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA-Economics. The Expert Group on the issues of Economy globalization and analysis of Center for Strategic Studies under the President of Azerbaijan (SAM) has prepared analysis on â€œInfluence of amendments made to state budget for 2011 on macroeconomic stability, economic development and social well-beingâ€.

According to investigations, incomes and expenses of state budget have significantly increased in 2003-2010: â€œThe average growth rate of revenues made 40.45, expenses made 40.1% during the reporting period. While state budget income/GDP ratio made 17.1% and expenses made 17.3% in 2003, this ratio was equal to 27.4% and 28.35 in 2010. The revenues rose 9.3 times, expenditures â€“ 9.5 times compared to 2003â€.

The analysis also showed that total cost of state services on different cost components in 2003-2010 rose 31%, defense â€“ 38.4%, judiciary, law enforcement and prosecution â€“ 28.4%, education â€“ 26.2%, health â€“ 33.8%, social protection and social security â€“ 26.4%, culture, art, information, physical training â€“ 28.7%, housing and communal services â€“ 35.1%, agriculture, forestry, fishing and hunting and the protection of the environment â€“ 32.7%, industry, construction and minerals â€“ 2.2 times, transport and communications â€“ 10.2%, economic activity â€“ 3.2 times, services not related to the main sections â€“ 56.3%: â€œThe budget deficit/GDP ratio was lower than the 3%-norm of the European standards, in general, budget deficit was financed on account of sources not causing the inflationâ€.

Note that, according to amendments approved by the government on May 27, 2011, the incomes was increased by 295 or AZN 15,54.2 mln, expenses â€“ 25% or AZN 15,941.2 mln.