Deputy minister: Forecast on oil price for 2012 is not conservative in Azerbaijan

Business Materials 28 September 2011 18:37 (UTC +04:00)

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

The forecast on oil price fixed at $80 per barrel by the Azerbaijani government is not conservative. The forecasts of the state and the consolidated budgets for 2012 were formed on its basis, Deputy Finance Minister Azer Bayramov told Trend on Wednesday.

"We have witnessed a sharp fall in oil prices on the world market," he said. "So, the forecast of $ 80 is not conservative. It is always better to surpass the forecast, rather than receive less money."

The Finance Ministry presented a budget package for next year and the next three years to the Cabinet of Ministers on September 14.

The budget revenue growth is expected to reach 5.67 percent, expenditures - 6.5 percent, compared to the forecast for 2011.
Budget deficit is projected at 548 million manat, or 1.3 percent of GDP projected for next year.

According to the forecasts of key macroeconomic indices for 2012, real GDP growth for the next year is projected at 5.7 percent, non-oil GDP - 8.6 percent, inflation rate - 6 percent.

GDP is projected to the amount of 43.5 billion manat.

The official exchange rate is 0.7869 AZN/USD