Azerbaijan, Baku, May 29 / Trend , I.Khalilova/
Azerbaijan's economy maintained not only stability in a global financial crisis, but also reached new strategic goals in 2008, chairman of the Accounting Chamber Heydar Asadov told a discussion of 2008 Public budget in the Parliament.
"As in previous years, the main task of the state was to ensure macroeconomic stability, to prevent inflation, achieving growth rates of GDP record levels in the world, but also the main objective was to provide food and energy security, increased state support for entrepreneurship, the agricultural sector and a number of other strategic objectives," Asadov said.
Azerbaijan's main strategic goal was the fact that despite the achievement of GDP growth at 10.8 percent, the GDP in the oil sector amounted to 15.7 per cent, which is dispersed unfounded views on petroleum based economy and the lack of development in the oil sector.
In 2008, the primary role in the economic development of Azerbaijan did not play the oil sector Asadov said. The result is that the global crisis did not feel in the Azerbaijani economy and society, even at the expense of a global reduction in consumption was possible to ensure the country's population of low-cost goods and improving the welfare of the poor.
Macroeconomic and fiscal policies based on the central government made the effectiveness of activities. On the one hand, the state took measures to ensure food and energy security, support, and on the other hand, kept under the control the macroeconomic and exchange rate policy that led to a great economic progress in the country.
"Another notable fact on the background of crisis is the increase of investments to economy by 38 percent, which was achieved through the growth of domestic investment by 34 percent, while a decrease of investments is observed in other countries," head of the Accounting Chamber said.
During the reporting period, state budget revenues were executed ahead of forecasts for 278 million manat, which allowed not only to comply with the budget request, but also to create necessary reserves as for 2009.
"For the first time since independence, the percentage of budget revenues to GDP reached 28.3 percent that makes us closer to levels of European countries," Asadov added.
In tax revenues, unlike in previous years, there has been compliance with the budget requests, but there is a slight delay in income tax of individuals associated with a reduction in the number of employees in PSA, changes in the scale of the tax deductions, as well as savings in salaries.
Fulfillment of expenses in the 2008-budget at 97.4 percent is an optimal level, he said.
"On the background of the global financial crisis, cost savings and elimination of unnecessary costs is considered the best fact Asadov said. The main reason for budget savings was incomplete filling of state budget organizations.
Despite the execution of budget to 97.4 per cent of all government programs are implemented under reforms avoiding debts which is confirming the optimality of such policies and for 2009"
Revenues of free budget in 2008 amounted to 19.52 billion manat growing to 2.4 times, and costs - 12.464 billion manat (growing at 97.6 per cent).
State budget revenues amounted to 10.763 billion manat, with growth at 79.9 percent, while expenditures - 10.774 billion manat (77 percent). According to Sharifov, the income of the budget is executed on 102.7 percent, while the costs - at 97.4 percent. Income from the oil sector compared to 2007, increased to 1.039 billion manat or 42.8 per cent. The share of non oil revenues increased 0.4 percent and made up 19.9 percent.
Taxes Ministry fulfilled predictions by collecting taxes on 105.9 percent, the State Customs Committee - to 100.1 percent, and transfers to the State Oil Fund had been transferred at the level of 3.8 billion manat in 2008.
Last year, 27.5 percent of budget expenditures or 2.958 billion manats be directed to financing the social budget of protected items, and increased by 44 percent compared to 2007.
Budget deficit amounted to 11.562 million manat, or 0.03 percent of GDP.