Azerbaijan, Baku, Nov. 16 / Trend , A.Akhundov /
The excess of the growth dynamics of Azerbaijan's 2012-state budget over the pace of the economy growth suggests that fiscal policy will continue to advocate a mechanism to support economic growth.
Azerbaijani Accounting Chamber Chairman Heydar Asadov stated about this during the discussion of the state budget and the consolidated budget for 2012 and the next three years at a joint session of parliamentary committees on economic policy, social policy, security and defense, natural resources, energy and environment, agricultural policy.
"In many countries, including developed countries, fiscal policy aims to prevent the slowdown of the economic development pace, or keep them on the same level. Azerbaijan will continue the trend, in which the fiscal policy will provide a mechanism to support economic growth," Mr.Asadov said.
He said a characteristic feature of the 2012-state budget and subsequent years is the balance between expenditure and revenues, which affects the conservation and reducing the budget deficit.
"One of the important performance criteria of the budget is the extent of its dependence on the processes in the global economy. The setting of a stable oil price at $80 per barrel in the Azerbaijani state budget in the period when the world markets is changing, says about a satisfactory level of this criterion for the country," he added.
He said the budget for 2012 will be more transparent, as evidenced by the reduction of expenditure under the "other expenses".
One of the innovations of the 2012- state budget is the targeted focus of investment spending.
"The state budget resources will be directed primarily to cover the needs of society in 2012," Mr.Heydarov said.
Finance Minister Samir Sharifov presented the state budget projections for 2012 at the joint meeting.
"While developing the budget forecasts, an important attention was paid to the social and investment orientation of the budget, strengthening of the social protection of the poor, increase of the country's defense potential, country's economic power, improving energy and food security, support for enterprise development, financing, government programs targeted in accordance with the strategy of national development priorities and directions," he said.
He said the budget revenues in 2012 is forecasted at $ 16.436.4 billion manat, expenses - 16 .984.4 billion manat. The growth of budget revenues, compared with the forecast for 2011 is expected to reach 5.67 percent, expenditures - 6.5 percent.
Budget deficit is projected at 548 million manat, which is 1.3 percent of GDP projected for 2012.
The share of social expenses in the draft state budget for 2012 is 27.8 percent, and these costs are projected to reach 4 713.4 million manat (with growth of 9.7 percent relative to expectations for 2011 and 27.3 percent relative to 2010).
Capital investment in the state budget provided in the amount of 7.827.9 billion manat (with weight of 46.1 percent of total budget expenditure), which is 0.6 percent lower relative to expectations for 2011, relative to 2010 they grow up to 55 7 percent.
The official exchange rate is 0.7866 manat to $1 on Nov. 15.