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Azerbaijan may revise budget projections for 2012

Business Materials 18 May 2012 16:15 (UTC +04:00)
The Ministry of Finance of Azerbaijan does not exclude the possibility of adjusting the state budget projections for 2012, deputy minister of finance Azer Bayramov told journalists.
Azerbaijan may revise budget projections for 2012

Azerbaijan, Baku, May18 /Trend A.Akhundov/

The Ministry of Finance of Azerbaijan does not exclude the possibility of adjusting the state budget projections for 2012, deputy minister of finance Azer Bayramov told journalists.
In the first quarter, revenues of the budget were executed on more than 100 per cent, and expenditures on 75-76 per cent.

"Most of the income is ensured through the oil sector, especially that due to income tax under the AIOC (Azerbaijan International Operating Company). As of April receipts for AMOC income tax amounted to 702 million manat, while the annual target amounted to 810 million," Bayramov said.

Budget projections for 2012 were formed taking into account the price of oil at 80 dollars per barrel, while on May 17 the price of AZERI LT CIF Augusta was $112.35 per barrel, or $1.99 per barrel less, compared to the previous price, according to the State Oil Company of Azerbaijan (SOCAR), which has produced Light Oil since 1997.

Azeri Light oil is produced from the Azeri-Chirag-Gunashli offshore field which is being developed under BP's operations. It is delivered directly to the Turkish port of Ceyhan via the Baku-Tbilisi-Ceyhan main export oil pipeline, to the Georgian port of Supsa via the Baku-Supsa pipeline and to the Georgian port of Batumi by railway.

AZERI LT FOB Ceyhan oil price was $111.41 per barrel, or $1.97 per barrel less than the previous day's price.

Azerbaijan exports URALS oil from the Novorossiysk port, which is delivered via the Baku-Novorossiysk pipeline. The price of URALS (EX-NOVO) was $107.44 per barrel, or $1.77 per barrel less than the previous price.

The price of Brent Dated, produced from the North Sea, was $109.23 per barrel, $1.84 per barrel less than the previous price.

Some 73 per cent of Azerbaijani state budget revenue will be provided through proceeds from the oil sector. State budget revenues for 2012 are projected at 16.438 billion manat, where the share of revenues from the oil sector accounts for 12 billion manat.
Transfers from the State Oil Fund of Azerbaijan are expected to the sum of 9.9 billion, or 60.2 per cent of total revenue of the budget manat in 2012. Transfers to the state budget amounted to 1839.8 million manat in the first quarter.

Deductions for income tax of contracting companies working in the oil and gas agreements such as PSA, is forecast at 810 million manat, and on consolidated taxes and other charges (excluding income tax) through SOCAR - 1 321.6 million manat.

The actual income in the state budget revenues amounted to 3487.8 million manat (28.4 per cent of GDP) In January-March 2012, increasing by 26 per cent compared to the same period last year.

State budget expenditures increased by 36.2 per cent and amounted to 2843.2 million manat (23.1 per cent of GDP). The budget surplus for January - March amounted to 644.6 million manat or 5.2 percent of GDP.

Official exchange rate on May 18 is 0.7858 AZN/USD

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