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Law on Budget System improved in Azerbaijan

Business Materials 11 June 2009 11:08 (UTC +04:00)

Azerbaijan, Baku, June 11 / Trend , I.Khalilova/

The Parliamentary Committee on Economic Policy has recommended a draft of amendments and supplements to the Law "On budget system" for approval by the Azerbaijani Parliament's plenary session.

"These amendments aim to improve the legislation in the formulation, approval, execution, amendments and additions to the public budget," Minister of Finance Samir Sharifov said. "The law was developed with the assistance of international financial organizations, and at that time it did not reflect some of the related with the budget process. Therefore, it is high time to improve it."

Amendments to the law is connected with forming reserve funds, compiling and presenting the draft budget to the various organs of executive power, record-keeping of foreign exchange earnings, specifying the issue of developing and implementing public investment programs, with revising of the public budget and cutting costs.

The minister said a very important issue is the issue of foreign exchange earnings to the public budget, namely - in the contract on the production section, which also has legal force, the income is made in foreign currency. At the end of each reporting period, the foreign exchange earnings are revalued. As a result of exchange rate of differences, additional gain or loss is formed which is reflected in income or expenditure of the public budget and the balance of treasury bills. Changes on revaluation are not relevant to the execution of cash and are not perceived as a deviation from the approved indicators, which should be reflected in the law "On Budget System".

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