Finance

Finance

Azerbaijani Parliament discusses amendments in 2012â€™s budget

29 May 2012 12:36 (UTC +04:00)

According to Minister, the amendments in budget have several causes: â€œZagatala, Gakh, Balaken and Shaki Regions were damaged as a result of earthquake. Besides, the regions around Kur River were damaged from floods. At the same time, several regions were damaged as a result of heavy rains, rains and technique must be purchasedâ€.

Sharifov noted that, law-enforcement and security measures also need funds. These are related to State Service for Mobilization and Conscription and Ministry of Emergency Situation’s Water Reserves State Agency: â€œBesides, AZN 300 mln was taken from special reserve fund of budget to start the measures on repayment of Seviet Period savingsâ€.

As a result considered amendments, AZN 350 mln will be allocated to conduction of measures on natural calamities, AZN 200 mln â€“ to special reserve fund of budget, AZN 95 mln - to improvement of ecological condition, social infrastructure in Baku and villages, construction works and ANZ 45 mln â€“ to military construction and defence spending.

According to Minister, totally AZN 690 mln is required. Of this, AZN 600 mln will be provided by additional tax payments: â€œThese taxes are related to successes in administration. So, Ministry of Taxes has transferred AZN 91 mln during 4 months. More AZN 90 mln will be received from reductin of other expenditures. Reduction in interests rates in world market allow thisâ€.

Sharifov noted that, no additional transfers from State Oil Fund are considered. According to forecast, AZN 500 mln of AZN 600 mln, which will come from Ministry of Taxes, will be provided by oil incomes (tax payments of oil sector), AZN 100 mln â€“ by non-oil sector.

Consequently, budget income is planned to reach AZN 17,038 mln, up 3.7% from forecast. Expenditure will make AZN 17,672 mln. Budget deficit remains unchanged.

Instead of this, higher oil prices in world market than expected caused SOFAZâ€™s incomes to be AZN 3,625 mln more and consequently, consolidated budget deficit will be substituted with AZN 938 mln-surplus.