Azerbaijan, Baku, Nov 23 /corr trend A.Akhundov/
The Azerbaijan Central Bank (ACB) is considering the optimal level of expenditures, incorporated in the State Budget for 2012, said Elman Rustamov chairman of the Central Bank in Parliament during the discussion of the draft state budget for 2012 and the next three years.
The state budget income for 2012 is forecast at 16 436.4 million manat and expenses at 16 984.4 million manat. The growth of budget income, compared with the forecast for 2011 is expected to reach 5.67 per cent whilst expenditure is 6.5 per cent.
"The budget for 2012 has been prepared and the growth of expenditures is conservative because there is a problem of sustainability. The volume of the consolidated budget now is at $25 billion whilst budget expenditures have reached 37 per cent of GDP. It is at the level of the Big Eight.
"Experts state that the excess of this figure is dangerous, since the greater part of the GDP state concentrates in its hands and divides, the more it can affect business growth. We believe that this level is best," Mr Rustamov said.
He added that the price of a barrel of oil built into the state budget next year is to be $80, which is also conservative and realistic.
"We laid it at 80 dollars, while the IMF predicts that next year the average price of a barrel of oil will stand at $102," He went on.
"No infrastructure project will be stopped or restricted in 2012.With the current problems in global markets, many states have cut social projects. Social and infrastructure projects in Azerbaijan, on the contrary, continue to develop."
According to Mr Rustamov the forecasted budget deficit at the level of 548 million manat (1.3 per cent of forecasted GDP for 2012) is symbolic.
The official exchange rate on Nov 23 is 0.7865 AZN / USD.
.