Azerbaijan Parliament Approves Amendments to 2008 Public Budget

Business Materials 2 May 2008 19:29 (UTC +04:00)

Azerbaijan, Baku, 2 May /corr. Trend I.Khalilova / On 2 May, the Parliament of Azerbaijan has approved certain amendments to 2008 Public budget of Azerbaijan.

Azerbaijani Minister of Finance, Samir Sharifov, said that as a result of the amendments to the budget forecasts, revenues of the aggregate budget totaled AZN 17 464.7mln, an increase of 66.4% as compared to formerly approved 2008 budget and 2.2 times - factual incomes in 2007. At the same time, revenues of the Public budget were determined at AZN 10 484mln (an increase of 74.5% as compared to 2007 and 41.8% to previous forecasts for), budget of Nakhcnivan autonomous Republic - AZN 218.8mln (a decrease of 4.3 to 2007 and increase of 1.4% to 2008), profits of State Oil Fund of Azerbaijan - AZN 10 144.7mln (an increase of 5.4 times and 2.8 times accordingly) and State Social Protection Fund - AZN 1 405.5mln (30.2% and 10.8%).

The expenditures of the aggregate budget were determined at AZN 12 774.1mln, an increase of 72.9% as compared to expenditures in 2007 and 25.3% to previous forecasts. The expenditures of the 2008 Public budget increased by 81.7% to 2007 and 29.8% to previous forecasts for 2008, budget of Nakhchivan - AZN 218.8mln (with a decrease of 3.4% and increase of 1.4% accordingly), SOFAZ- AZN 4 371.1mln (an increase of 4.1 times and 2.6 times) and Social Protection Fund - AZN 1 405.5mln (39.8% and 10.8%). The expenditures on the projects being financed through foreign credits were maintained at previous amount of AZN 506.4mln, an increase of 3.5 times as compared to 2007.

According to the Minister, the State Head's key priorities is to develop the non-oil sector, creation of reserves to ensure food security and acceleration for realization of the investment projects. The Public budget plans to allocate an additional AZN 156.6mln to ensure the food security. The funds are expected to be directed towards increasing State support for agriculture, accelerating melioration and irrigation works, constructing special storages to maintain grain.

Minister said that the Government is considering additional steps to increase grain harvest; therefore, great attention will be paid to seed-growing development.

The state capital investments will increase to AZN 4.326bln and expenditures for maintenance of law-enforcement bodies will increase by AZN 4.8mln.

Additional AZN 1.505bln will be allotted from the budget for capital investment and their total amount will comprise AZN 4.326bln. AZN 1.112bln of the funds will be spent for implementation of infrastructural projects in the field of highways, transport, energy supply, gas infrastructure supply to provinces.

Additional budget revenue will be allocated in four directions. The forecast collection of taxes for the Tax Ministry will be increased by 7.6% (AZN 380mln) to AZN 5.380bln, for State Customs Committee by 0.9% (AZN 10mln) to AZN 1.110bln, transfers from State Oil Fund by 2.7bln to AZN 3.8bln, revenue from paid services of budget organizations by AZN 1.5mln to AZN 137.5mln.

Report on fulfilment of public budget in 2007 was also approved at today's parliamentary meeting.

On 2 May, official exchange rate totalled 0.829 AZN/USD.

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