Azerbaijani Finance Ministry: Level of state budget income is optimal

Business Materials 18 May 2012 20:34 (UTC +04:00)

Azerbaijan, Baku, May 18 / Trend A. Akhundov /

The current level of the Azerbaijani state budget income is optimal, Deputy Finance Minister Azer Bayramov said.

"Last year, state budget revenues hit 30.8 per cent of GDP," he told media today. "This is the best index. So, there is no sense to increase this share."

He said that the challenge today is to balance revenues due to the further reduction of transfers from SOFAZ.

"We will try to cover the operating costs of the budget at the expense of non-oil revenues," Bayramov said.
He added that in 2011, revenues of the state budget were fulfilled by 100.9 percent.

"Last year, state budget revenues amounted to 15.700.7 billion manat compared to the forecast of 15.554.2 billion manat, which exceeds the 2010 index by 4.297.7 billion manat or 37.7 percent," Bayramov said.

He added that the share of budgetary revenues in GDP was 31.4 percent. About 34.9 percent of state budget revenues was ensured through the income obtained from the Ministry of Taxes, 7.3 percent - the State Customs Committee, 57.3 percent - the State Oil Fund, 0.5 percent - from other sources.

He said that the expenses in 2011 were fulfilled by 96.6 percent and totaled 15.397.5 billion manat compared to the forecast worth 15.941.2 billion manat. This exceeds the index of 2010 figure by 30.9 percent, or 3.631.6 billion manat.

The share of budget expenditures in GDP was 30.8 percent, exceeding the previous year index by 3.1 percent," he said. "About 46.2 percent, or 7.115.4 billion manat in the structure of expenditure were spent to current expenditures, 51.6 percent or 7.938.3 billion - main costs, 2.2 percent or 343.8 million manat - to serve the external debt and other obligations of the state."

He said that last year the budget was executed with a surplus of 303.2 million manat.

"As of January 1, 2012, the balance on a single treasury account balance of the state budget amounted to 382.9 million manat," Bayramov said.

The official exchange rate is 0,7858 AZN/USD on May 18.