Azerbaijan’s Fiscal Policy Results from Dynamic Economic Development

Business Materials 7 August 2008 11:27 (UTC +04:00)

Azerbaijan, Baku, 7 August / Trend corr. I.Khalilova / Surplus of Azerbaijan's consolidated budget amounted to AZN 4.114bln in the first half of 2008, Azerbaijani Finance Minister Samir Sharifov said at Cabinet's meeting chaired by President Ilham Aliyev, dedicated to results of socio-economic development of the country in the first half-year of 2008.

The consolidated budget incomes totalled AZN 8.707bln and expenditures - AZN 4.593bln. According to Sharifov, incomes of the state budget in January-June were fulfilled 111.3% (AZN 4.810bln) and expenditures 88.9% (AZN 4.095bln).

According to specified forecasts, the consolidated budget incomes will rise 66.4% in 2008 from approved forecasts to AZN 17.465bln and expenditures will rise 25.3% to AZN 12.744mln.

The consolidated budget is formed through the state budget, budgets of the State Oil Fund and the State Social Protection Fund.

"Rise of the consolidated and the state budget indexes results from dynamic development in all economic fields," Minister said.

According to Sharifov, realization of fiscal policy played an important role in country's economic development. As result, within last five years budget incomes from non-oil sector grew 5.3 times, their percentage in Gross Domestic Product (GDP) increased from 11% to 18.7%, the number of taxpayers doubled to 184,000 and their goods turnover grew 4.7 times to AZN 16bln.

Within five years, the profit tax rate dropped from 27% to 22%. Release on financial leasing operations was introduced; tax remissions for agricultural producers, interests on people's deposits at banks, investment securities dividends and interests were prolonged.

On 6 August, the official exchange rate totalled 0.8093 AZN/USD.

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