State budget-2012, draft of which will be submitted for consideration to the Parliament of Azerbaijan this month, is rather conservative, Deputy Finance Minister Azer Bayramov told reporters on Wednesday.
"In first turn, it is planned to increase socially oriented expenditures and at the same time continue financing of the begun investment projects. As compared to this year, the pace of growth of state budget expenditures is planned to be similar to that of the non-oil sector," the Deputy Minister said.
According to him, budget expenditures are expected to grow next years in connection with an increase, like in 201, of pensions and wages that covered a number of sectors.
Starting from this November 1, monthly wages of military servants, employees with the special ranks of the Ministry of Emergency Situations, and employees with the special ranks of the Interior Ministry have been increased by 30 percent on average.
"While this year's increase occurred in the second half of the year, next year finances for an increase of wages and pensions are expected to take place throughout the year, which means a growth of socially oriented expenditures," Bayramov said.
The drafts of state budget-2012 envision an increase of minimum monthly wages up to 93.5 manat against 85 manat in 2010 and 2011.
Next year, the transfers of the State Oil Fund of Azerbaijan will be approximately equivalent to that this year, and this money will be spent for the completion of investment projects, which have already begun, Bayramov said. "These are infrastructure projects. A series of programs envisioning development of Baku and its settlements and the provision of population with drinking water were approved recently so SOFAR's assets will be spent for the completion of these projects shortly," the Deputy Minister noted.
In 2012, transfers from the State Oil Fund of Azerbaijan are expected to be equivalent to 9.9 billion manat or 60.3 percent of total state budget revenues. The transfers will exceed that expected in 2011 by 0.7 billion manat or 7.6 percent.
Azerbaijan's state budget-2012 revenues and expenditures are forecasted as 16,436.4 million manat and 16,984.4 million manat, respectively. As compared to the 2011 forecast, state budget-2012 revenues and expenditures are expected to increase by 5.67 percent and 6.5 percent, correspondingly.
The share of socially oriented expenditures in the draft state budget-2012 is 27.8 percent, and the expenditures are forecasted to be equivalent to 4,713.4 million manat, an increase of 9.7 percent against the 2011 expectation and 27.3 percent against 2010.
State budget-2012 envisions capital investments of 7,827.9 million manat (an equivalent to 46.1 percent of the budget expenditures), down 0.6 percent from the 2011 expectation but up 55.7 percent from 2010.
The official exchange rate on November 2 is 0.7868 AZN/USD.