Azerbaijani Finance Ministry sees no need to adjust budget projections
Azerbaijan, Baku, April 18 / A.Akhundov, E.Ismayilov /
The Azerbaijani Finance Ministry sees no urgent need to adjust the forecasts of the state budget for 2012 despite the continuing rise in oil prices on the world markets, deputy finance minister Azer Bayramov told Trend on Wednesday.
"We see no urgent need to adjust the parameters of the state budget. The more budget revenues reach, the higher will be a surplus," said Bayramov.
He said the rise in oil prices on world markets is offset by the fact that the volume of production of the Azerbaijan International Operating Company (AIOC) is now lower than projected.
"We will feel the effect of income tax only next year. Therefore, there are no major changes yet and I think there won't be a dramatic difference between the predictions and the facts, therefore, there is no need for adjustment," said Bayramov.
Chairman of the parliamentary committee on economic policy Ziyad Samadzade said that in the case of a forecast budget revision for the current year, additional funds will be used to increase the level of social protection and creation of infrastructure facilities.
"Really a lot of money is sent to the construction of infrastructure facilities, additional funds this year will also be directed to a refund of deposits in the former Savings Bank of AzSSR. There may be a revision of budget forecasts, in which case funds will be directed at strengthening the social protection and establishment of infrastructure facilities," Samadzade told Trend on Wednesday.
He said the state budget for this year didn't provide costs associated with the creation of a large complex in Azerbaijan on oil and gas processing and production of petrochemical products.
"Accordingly, in the case of a revision of budget forecasts, it may include the cost of the preparatory work for the implementation of this major project," said Samadzade.
Budget projections for 2012 were formed, taking into account the price of oil at $80 per barrel, while last week on April 9-13, the average price on Azeri Light CIF Augusta exported from Azerbaijan via the Ceyhan, Batumi and Supsa ports was $124.37 per barrel or $2.44 per barrel less compared to the previous week.
The maximum price of AZERI LT on April 9-13 was $125.99 per barrel, the minimum price - $123.23.
The average price on Urals (Ex-Novo) exported from Azerbaijan via the Novorossiysk port was about $117.38 per barrel or $2.56 per barrel less compared to the previous week. The maximum price was $119.32 per barrel and the minimum - $116.44.
The average price on Brent Dated was $121.04 per barrel or $2.8 per barrel less compared to the previous week. The maximum price was $123.01 per barrel and the minimum - $120.07.
In 2012, according to forecast, due to the proceeds from the oil sector, 73 per cent of Azerbaijan's state budget revenues will be provided.
State budget revenues for 2012 are projected at 16.438 billion manat, where the share of proceeds from the oil sector accounts for 12 billion manat.
In 2012, transfers from the State Oil Fund of Azerbaijan are expected to be 9.9 billion manat or 60.2 per cent of total proceeds to the budget.
Deductions for the income tax of contracting companies working in PSA oil and gas agreements is forecast at 810 million manat, and from consolidated taxes and other charges (excluding income tax) through SOCAR - 1.321.6 billion manat.
The official exchange rate is 0.786 AZN to $1 on April 18.