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Azerbaijan passes 2009 draft budget - UPDATED

Azerbaijan passes 2009 draft budget - <font color=red> UPDATED </font>

23 September 2008 15:52 (UTC +04:00)

Artur Rasizade said there is a remarkable growth in the 2009 budget blueprint.
According to him, social spending is projected to rise by 24-25% next year.
Under the predictions, GDP is predicted to reach AZN 43.6 billion and average salary AZN 353.3 next year.
Revenues are projected to rise 16.1% to AZN 12.177 billion (27.9% of GDP) and expenditures are expected to increase 11.7% to AZN 12.355 billion (28.3% of GDP).
The current expenditures are predicted to be AZN 6 655.5 million (53.9% of total spending), capital expenditures AZN 5 609.4 million (45.4%), debt service AZN 90.1 million (0.7%). Social expenditures will account for 33% (AZN 4.024 billion) in the budget, up AZN 790 million on 2008.
Revenues of consolidated budget are projected to rise 29.9% to AZN 22.680 billion and expenditures 15.5% to AZN 14.758 billion.
Predictions for revenues are approved at AZN 12.177 billion and expenditures at AZN 12.355 billion. The meeting decided to send the final draft to the presidential administration for approval.
By law, the state budget blueprint has to be submitted for parliament approval by October 15.
Under macroeconomic outlook, in the pessimistic forecast, oil prices are considered at the level of $80 per barrel in 2009. The medium scenario envisages oil prices at $100 and optimistic projection takes oil prices at $125.
GDP growth rate is expected to be at least 18% next year.
Inflation is predicted to be lower than this year (20-21%), depending on the trends on the world markets. Inflation is expected to decline to a single-digit level in the medium term (2009-2012).
Annual inflation rate was 16.3% in Azerbaijan last year.
The government raised its annual inflation outlook for 2008 to 18% from 14% while the IMF said inflation will not be below 20%. At present real inflation is near 21%.
Azerbaijanâ€™s GDP is expected to reach AZN 41 billion at the 2008 year-end.