Finance

Finance

National Budget Group: â€œ98% of SOFAR receipts will be used next yearâ€

18 November 2011 13:01 (UTC +04:00)

Baku. Ali Ahmedov â€“ APA-Economics 75% of state budgetâ€™s receipts will come from oil incomes in 2012. 79.5% of budget incomes growth comes from State Oil Fund, National Budget Group reported.

NBG says 79.5% of AZN 810.96 mln-growth will be formed on the account of SOFARâ€™s transfers to the budget. Consequently, share of Fundâ€™s transfers in budget incomes wil exceed 60% which is the highest data. Note that, this index is expected to be 59.2% in 2011.

Generally, NBG says that, 98% of SOFARâ€™s incomes wil be used next year and this contradicts SOFARâ€™s long-term usage principles: â€œSo that according to strategy on management of oil and gas incomes affirmed in 2004 at least 25% of Fundâ€™s receipts must be directed to chargesâ€.

Although the non-oil sector in GDP structure is forecasted to raise, its adequate growth budget is not expected in 2012. According to NBG member, chairman of Free Economy Support PU Zohrab Ismayil, in fact, share of non-oil sector in budget is lower than it announced. So that profit tax and income taxes of employees on Production Sharing belong not to oil, but to non-oil sector: â€œConsequently, share of oil sector in budget incomes reaches 75%â€.

NBG also shows that the forecasts on simplified tax donâ€™t fit the growth rate of service sector. So that according to official forecasts, simplified tax charges are foreseen to increase by 1.1%, while the trade, placement of tourists and catering sector is informed to grow by 131.3%, construction â€“ 9.5% and other services â€“ 5.8%.

Besides, the tax sanctions will be made hard next year. So that according to prognosis, AZN 120 mln is considered to charge from the fine and sanctions for tax violation, next year, up 3 times from 2011.