Azerbaijan, Baku, Oct. 7 / Trend I. Khalilova /
Parliamentary committees on science and education, culture, and regional policy approved the draft state budget of Azerbaijan for 2011 at a joint meeting today. They recommended the document for consideration by the Azerbaijani parliament.
Shamsaddin Hajiyev, Chairman of the Committee on Science and Education, said that the budget projections were made in accordance with the socio-economic situation in the country and taking account economic processes in the world. It will support the dynamic development of Azerbaijan's economy in the future.
"Azerbaijan has already formed a budget institution. All state organizations participate in the process of budget projections," Hajiyev said.
Budget revenue in Azerbaijan (over $15 billion) is four times more than the budget of Georgia ($3.6 billion) and six times more than the budget of Armenia ($2.4 billion), underlining the economic power of Azerbaijan.
Public expenditure in Azerbaijan (projected at $15.9 billion) is 4.2 times more than the budget of Georgia ($3.8 billion), and 5.7 times more than Armenia ($2.8 billion).
"Azerbaijan is turning into a regional economic center," Hajiyev said.
Khagani Rzayev, the chief of social financing department under the Ministry of Finance, said that the process of drawing up and executing budgets has improved in the structure of state budget expenditures for 2011.
Macroeconomic forecasts for next year, in particular, the GDP growth worth 3.8 percent and non-oil GDP of 7.2 percent, were taken into account when forming the budget projections.
The budget revenues for 2011 are projected at 30 percent of GDP, or 12.061 billion manat with the increase of 4.8 percent compared to the forecasts for 2010. The expenditure of the state budget is projected to the amount of 31.7 percent of GDP. The expenditure will increase by 3.9 percent compared to the forecast for the current year and hit 12.748 billion manat.
Spending is put at 5.390 billion manat, 42.3 percent of the costs of state programs and activities.
The weight of social priorities within the total budgetary expenditures are fixed at 33.3 percent, or 4,234 billion manat. The figure increased by 8.8 percent compared to the forecasts of 2010.
"The decisions were made to increase salaries of employees of budgetary oganizations, the basic part of pensions and other social benefits to strengthen the social protection and improvement of social security in 2010," Rzayev said.
An allocation of 3.518 billion manat, or 7.5 percent more than it was forecaste in 2010, is planned to finance activities in the field of science, education, health, culture, physical culture, youth policy, and social protection. The weight of these costs increased by 1.1 percent compared to 2010. It will reach 27.7 percent of total state budget.
"The state budget provides for expenditure in connection with the use of a new mechanism funding in higher education for the first time in 2011," Rzayev said.
Budget deficit for next year is projected at 687 million manat or 1.7 percent of GDP. This is 0.3 percent less than the forecast for 2010.
On Oct. 7, the official exchange rate is 0.8021 manat to $1.