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Azerbaijan parliament discusses 2009 draft budget -UPDATED

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

06 November 2008 10:47 (UTC +04:00)

Samir Sharifov, Minister of Finance, briefed the participants about the predictions in the budget blueprint.
According to him, the budget draft allows for the probability of an increase in money inflow and inflation following the expected rise in foreign-currency revenue during 2009-2012.
â€œCoordination of monetary and fiscal policies and money sterilization and other measures to minimize inflation pressures have been taken into account,â€ he added.
Under the budget outlook, revenues are projected to rise 16.1% to AZN 12.177 billion (27.9% of GDP) and expenditures are expected to increase 1.4% to AZN 12.355 billion (28.3% of GDP).
In the structure of revenues, AZN 5 750 million (a 6.9% year-on-year rise) is expected to come through the Ministry of Taxes, AZN 1 300 million (+17.1%) through the State Customs Committee and AZN 4.7 million (+34.3%) through the State Property Management Committee.
Besides, AZN 5 122.3 million is expected to come from the other sources. Of this, 40.4% is predicted to come from the State Oil Fund, 1.1% from the budgetary organizations and 0.6% from other sources.
The current expenditures are predicted to be AZN 6 655.5 million, capital expenditures AZN 5 609.4 million, debt service AZN 90.1 million.
Revenues of consolidated budget are projected to rise 29.9% to AZN 22.680 billion and expenditures 15.5% to AZN 14.758 billion.
In the consolidated budget, the expenditure of the State Social Protection Fund is projected to increase 26.3% to AZN 1 775.5 million and expenses of the State Oil Funs to increase 29.9% to AZN 5 676.3 million.
Although the consolidated budget is projected to have surplus, the budget deficit is expected to be AZN 6 645.4 million or 15.2% of GDP without receipts from the State Oil Fund.
Revenue and expenditure of the draft budget for Nakhchivan Autonomous Republic are equally predicted at AZN 272.7 million, up 53.9% on this year.
Shahin Mustafayev, Minister of Economic Development, added that the countryâ€™s GDP is projected to grow 18.9% to AZN 43.6 billion, and the growth will be 24.4% in oil sector and 10.5% in non-oil sector.
According to him, he oil sector is predicted to account for 88% of GDP.
â€œPer capita GDP will double to $7 143. Investment in the national economy is expected to be AZN 8.4 billion, of which AZN 6.5 billion will be domestic investment.
Heydar Asadov, Chairman of the Accounting Chamber, noted that the budget should support macroeconomic management against the backdrop of the economic trends in the world.

â€œThe draft budget took account of this. The budget will allow undertaking regulation of unfavorable assets, assistance to bank capital, strengthening of liquidity, flexible monetary policy and other measures next year. Falling oil prices will not affect the implementation of projects that are funded from the budget because falling prices will also not equally and adequately decrease prices of materials and goods. Also, the bulk of budget revenue doesnâ€™t come from oil. So, 85-90% of the budget will not be affected by declining oil prices,â€ he noted.
After discussion, parliamentarians decided to send the draft budget to the parliament plenary session for approval.