Azerbaijan seeks to reduce the volume of transfers from SOFAZ

Business Materials 28 January 2011 17:22 (UTC +04:00)

Azerbaijan, Baku, Jan. 28 / Trend N.Ismayilova /

The question of need to adjust the forecasts of the Azerbaijani 2011 state budget can be considered following the outcome of the economic development in the first or second quarters, Parliamentary Economic Policy Commission Chairman Ziyad Samadzade told journalists on Friday.

"The 2011 budget forecast was formed at oil prices of $60 per barrel, while today the average price of oil varies at $100 per barrel," Samadzade said.

Samadzade said today that Azerbaijan's strategic goal is to decrease transfers from the State Oil Fund (SOFAZ).

The decision to allocate significant amounts from SOFAZ was linked with the fact that Azerbaijan was aware of the need to accelerate development of its economy, and the funds were used for the financing of this development," Samadzade 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). Transfers from State Oil Fund approved at the level of 6.480 billion manat.

The official exchange rate is 0.7969 manat to $1 Jan. 28.