BAKU, Azerbaijan, July 15. We have increased the state budget not only as a result of the rising oil price, President of the Republic of Azerbaijan Ilham Aliyev said addressing the meeting dedicated to the results of six months of this year, Trend reports.
"In other words, it became possible as a result of adjustments, as well as the reforms carried out. Yes, the oil price in the world did rise, but at the same time there was a decline in the world’s capital markets, and everyone should know this too. People tend to think that oil prices have risen and Azerbaijan has become richer. Yes, oil prices have risen, but our reserves mainly consist of loans and shares. Let them look it up and see the decline the world’s capital markets are experiencing. Of course, this is a temporary phenomenon. All sovereign wealth funds have been faced with this situation. I don't want to talk about the losses of other sovereign funds now, but here we are talking about losses of tens of billions – large sovereign funds - as a result of this capital market shrinking. This has a negative impact on us as well. However, thanks to the measures taken, thanks to the reforms, we are making sure that no-one feels that.
Therefore, the reforms carried out in the economic sphere have made it possible to collect 2 billion manats in excess of the forecast in the tax sphere in six months. Why? Because there is transparency, accuracy and accountability. A few years ago, business people were given time to switch to normal tracks and shake off the shadow economy. Those who patronized them, as they say, were taught a lesson as well. Therefore, the tax authorities alone collected an additional 2 billion manats in six months, and we are using these funds. There are still about six months left until the end of the year. This is the key factor behind our financial and economic opportunities," the head of state said.