Azerbaijan, Baku, Oct. 11 /Trend, A.Akhundov, I.Khalilova/
The Accounting Chamber of Azerbaijan considers it correct that the draft of 2011 Public budget is less investment directed, the chairman of the Chamber Heydar Asadov said on Monday during discussions on the draft budget for next year at a meeting of parliamentary committees.
"Not expecting significant growth in revenues and expenditures in 2011 and in subsequent years, a definite improvement in the economic development of the country, the achievement of its objectives and correction of priorities should be considered in drafting the budget, Asadov said. - For a long time, even in the most difficult years, the budget of Azerbaijan was socially directed, but over recent years, its investment direction was added to the budget."
In this regard, he said, the distinctive point of 2011 budget is that while maintaining the social and investment focus, the complex nature also takes a priority. "That is, in this budget, priority is given not only to social and investment spending. The priority of investment spending has even downgraded, and significance has been attached to expenditure on health, education, culture and especially to finance the country's defense capabilities," said Asadov.
According to him, the Chamber believes it is natural, since the urgent investments have been made, and after this, the investment is needed for their continuation.
"A large part due to reducing investment costs for next year - 61 million manat - has been redirected to spending on education, more than 50 million on health care, 131 million - on social security and social protection, 7 million - an increase in transfers to the State Social Protection Fund, 119 million - on military expenditure," said Asadov.
According to him, further attention should be paid not to increasing the budget cost parameters, but effective use of its funds. "The Chamber and the Finance Ministry should develop a plan of comprehensive measures and expand work in this regard," said Asadov.
According to him, spending funds on the basis of programs and projects should also be expanded. "Despite that this mechanism first began to be applied in Azerbaijan amongst CIS countries, there is a need to expand its use," said Asadov.
According to Asadov, accepting projects from credit managers, budget customers, who do not fully base the effectiveness of their projects, and crediting their financing, should be tightened.
"Also special attention should be given to optimize the cost structure. Increasing expenditure on health, education, culture, and especially on the defense of the country creates the conditions to be closer to European standards," said Asadov.
According to him, many of the mentioned parameters have been included in the 2011 budget. "Large work has been done on improving the budget structure, improve the transparency of its implementation," said Asadov.
According to him, the draft Public budget for the next year will create the necessary financial support to complete tasks in the economic field, facing the country.
According to Asadov, the budget will also ensure the progress in reducing the debt and the amount of the budget deficit.
"Despite that the budget deficit is planned at a rate of 687 million manat [1.7 percent of GDP], the projections for oil prices [$60 per barrel], and other factors allow us to talk about reducing the deficit," said Asadov.
According to forecasts, Azerbaijan's Public budget revenues in 2011 will increase compared to 2010 by 4.8 percent - up to 12.061 billion manat (30 per cent of GDP), expenditure - by 3.9 percent - up to 12.748 billion manat (31.7 percent of GDP).
The Parliament plans to consider the draft budget for 2011 at a plenary meeting on Oct. 12.
Official exchange rate on Oct. 11 is 0.8020 AZN/USD.