Azerbaijani 2010 public budget corresponds to reality: expert
Azerbaijan, Baku, Nov. 25 / Trend N.Ismayilova /
The 2010 Azerbaijani state budget corresponds with reality, ex-Economics, Finance and Credit Policy Apparatus ex-head at the Azerbaijani Cabinet of Ministers Ogtay Hagverdiyev said.
"The budget is realistic in terms of oil prices, so the probability is high that the 2010 budget will be fulfilled since oil prices are higher than that planned at $45 per barrel. Most likely it will cover the deficit," he said.
According to Hagverdiyev, inflation and the rate of the manat were predicted cautiously, which suggests that the government is planning a series of measures to make macroeconomic indicators more acceptable for the country. The rate of inflation for next year is estimated at three percent and 0.8042 manat per $1.
Next year, the GDP is projected at 31.825 billion manat with 6.8-percent higher growth than in 2009.
GDP growth in the non-oil sector was 12.32 billion manat, which was 20.3-percent higher than in 2008.
The figure is projected to hit 11.95 billion manat with a growth rate of 8.3 percent in 2010. GDP growth in the oil sector is expected to reach 15.32 billion manat, which is 3.2-percent higher than in 2008. The index is projected to hit 16.42 billion manat with a growth rate of 4.9 percent in 2010.
"All of this suggests that Azerbaijan's economy will develop more dynamically," he said. "The international situation is gradually stabilizing and this shows that oil demand will start to grow and give us the opportunity to sell the energy at a better price."
According to the independent expert, the state budget's deficit will be covered at the expense of these funds, as oil revenues constitute a large portion of budget revenues.
Forecasts for public budget revenues are expected to hit 10.01 billion manat in 2010 and expenditures 11.26 billion manat.
Limits to the public budget deficit were forecast at 1.24 billion manat. Four sources are provided to finance the budget deficit - via revenues from state property privatization and domestic and external loans.
The public budget is expected to receive revenues worth 6.44 billion manat from the oil sector in 2010, which amounts to 64.35 percent of the total income.
The State Oil Fund of the Azerbaijan Republic is expected to transfer 4.91 billion manat to the public budget.
On Nov. 25, the official exchange rate is 0.8025 manat to $1.
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