Azerbaijan, Baku, Oct. 14 / Trend N.Ismayilova, M.Aliyev /
The growth pace of Azerbaijan's 2011-state budget, namely its expenditure and revenue parts, completely reflect the economic realities, Finance Minister Samir Sharifov said during discussions over the draft budget for next year at the plenary session of the Parliament.
"The development of Azerbaijan's economy has led to fiscal balance, and the country has already developed a steady budget. Of course, the 2011-state budget reflects these realities and the growth pace of expenditure and revenue parts reflect the economic reality," Sharifov said.
Sharifov said the main goal is to direct the increase in spending to ensuring macroeconomic stability and realization of country's basic objectives, as well as improving the material welfare of the nation.
"The work is underway to improve the budget classification, and we have received certain proposals," he said. "Inventory of budget classification and analysis on it has been made. Certain amendments to the classification will be made soon."
Sharifov also clarified the reproofs by some MPs about that "what costs are included in miscellaneous expenses of the 2011-state budget".
"This category includes reserve funds, namely the Azerbaijani President's Reserve Fund and the reserve fund of the state budget. About 260 million manat was directed these funds and 270 million manat to the target reserve fund for highways and fund for ensuring loans attracted under the state guarantee," he said.
"The miscellaneous expenses include costs for activities and projects for strengthening the country's defense capabilities, for what the budget will allocate more funds and it is normal for the country being in the military state," Sharifov noted.
Sharifov said that this category also include costs for international operations, which stipulates payment of membership fees of the country and funding certain activities.
He said the funding for food security and targeted activities in agriculture will be increased. The state budget continues funding of the JSC Agroleasing, despite the fact that its activity is aimed at the transition to self-financing.
The government kept, the budgetary spending to finance social mortgage. "The funds allocated for social mortgage should, most likely, be increased, but the budget has a lot of expenditures and additional funds for these purposes will be allocated if possible," 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). Deficit of Azerbaijan's 2011-state budget projected at 687 million manat or 1.7 percent of GDP.
The parliament launched consideration of the document at a plenary meeting on Oct.12.
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