Azerbaijan, Baku, Oct. 11 / Trend I.Khalilova /
The Azerbaijani Parliamentary Committees for Economic Policy, Natural Resources, Energy and Environment and Agricultural and Social Policy approved the draft 2011-state budget at the joint meeting on Monday. The document was recommended for consideration in the parliament.
The forecast on the state budget was developed in accordance with the strategic objectives and development priorities of Azerbaijan, and focused on maintaining social and economic reforms; strengthening social security, defense capabilities, economic, energy, food and environmental security; ensuring socio-economic development of the country's regions; funding of the targeted state programs and other important events, Finance Minister Samir Sharifov said at the joint meeting.
"The main goals in forming the budget forecasts were the less dependence on the oil sector, efficient use of economic and resource potential of the regions, improvement of the efficiency of social services funded from the state budget and ensuring of targeting of financial aid," he said.
In 2011, the tax policy would focus on ensuring the growth rate of tax and non tax revenues, improving tax administration and reducing tax liabilities. Next year, Sharifov said, the country will continue activities directed to extend the innovation and entrepreneurial activity, optimize taxation in different directions and create new and active businesses.
The issues of improving competitiveness in line with world markets, increasing agricultural production for domestic needs, expansion in domestic investment in total investment and creation of public-private partnerships to attract private investment for projects in the country were also the main topics of the discussions.
"Given the economic situation in the world, we have approached to forecasting of the budget revenues and expenditures, with caution and set the price of oil at $60 per barrel," Sharifov said.
Revenues of the 2011- state budget will increase, by 4.8 percent to 12.061 billion manat (30 percent of GDP) compared to 2010 and expenditure - by 3.9 percent to 12.748 billion manat (31.7 percent of GDP).
Sharifov said in the structure of budgetary revenues received from the Taxes Ministry would amount to 4.420 billion manat, which is 1.1 percent, or 50 million manat less than the figure forecasted for 2010. Some 38 percent (1.680 billion manat) of tax revenue will be provided by the oil sector, which is less by 14.7 percent (290 million manat) compared to 2010. Income from non-oil sector grew by 9.6 percent to $ 2.740 billion manat (62 percent of the Taxes Ministry's forecast). 449 million will be collected through local taxes (except Azerbaijan), the forecast on which increased by 3.6 percent (15.4 million manat). Their weight increased by 0.5 percent up to 10.2 percent in total tax revenue.
The forecast on deductions by the State Customs Committee increased by 1.8 percent (20 million manat) up to 1.120 billion manat. Other sources will transfer 6.521 billion manat, of which 99.4 percent (6.480 billion manat) fells to the State Oil Fund, and 0.6 percent (41 million manat) - other income.
According to Sharifov, in the structure of budget expenditures 55.3 percent or 7.070 billion manat account for current expenses, which will increase by 56.1 million manat (0.1 percent) compared to 2010 and capital expenditures amount to 42 percent (5.358 billion manat) with growth of 7.1 percent (357 million manat), the cost of servicing foreign and domestic debt - 2.7 percent (347 million manat), with growth of 20.8 percent (59.6 million manat).
Sharifov said that in the structure of budgetary expenditures for 2011, 33.3 percent of total budgetary expenditure, or 4.234 billion manat will be spent on social protection and welfare, and they increased by 8.8 percent compared to 2010.
In 2011, the state budget is expected to allocate 320 million manat to finance targeted government programs, 111.6 million manat - state program on long-term sustainability and food security by 2016, 220 million manat - modernization of reclamation and irrigation and 374 million manat - reconstruction of roads.
The state budget will allocate 83.3 million manat to finance measures to strengthen the material base in the agricultural sector, carry out bank protection works to prevent floods, introduce a mechanism for compulsory insurance against accidents at work, improve drinking water in the country's regions and maintain of the JSC Azercosmos.
The state budget will allocate 34 million manat to finance development of small and medium-sized enterprises through the National Fund for Entrepreneurship Support, 6 million manat - to ensure the activities of a similar fund in the Nakhchivan Autonomous Republic, and 35 million manat - support the activities of JSC "Agroleasing".
Deficit of Azerbaijan's 2011-state budget projected at 687 million manat or 1.7 percent of GDP.
The parliament is expected to consider the draft budget for 2011 on Oct. 12 at the plenary session.
The official exchange rate is 0.8020 manat to $1 Oct. 11.
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