Adjustment of Azerbaijani state budget for 2012 doesn’t require increase in transfers from State Oil Fund
Azerbaijan, Baku May 26 /Trend A.Akhundov/
The increase in tax revenues allow not to increase the volume of transfers from the State Oil Fund of Azerbaijan (SOFAZ) in the adjustment of the state budget for 2012, Finance Minister Samir Sharifov said at the meeting of the parliamentary committee on economic policy during the debate of the bill on amendments to the state budget for 2012 on Saturday.
"Tax revenue on the non-oil sector of the economy in January-April exceeded forecasts by 93 million manat. In addition, we have already received 702 million manat during this period for income tax under the AIOC (Azerbaijan International Operating Company) at the annual forecast of 810 million manat. In addition, according to our estimates, State Oil Company (SOCAR) will pay an additional 30 million manat in 2012 due to the difference between domestic and export price of oil," Sharifov said.
He added that all this allows not to increase transfers from the State Oil Fund in transfers from State Oil Fund.
"Mechanism of taxation of SOCAR will change in 2013 by law, and we will see more effect from it," Sharifov said.
Under the changes, budget revenues and expenditures will increase by 600 million manat and amount to 17.038 billion manat and 17.672 billion manat, respectively.
The main reason for adjusting the budget projections is providing additional funding in accordance with the instructions of the President to cover the damage to the population and socio-economic infrastructure of Zagatala, Gakh and Balaken areas in the north-west of the country caused by the earthquake.
Furthermore, additional funds will be directed to complete the work to eliminate the effects of the large scale disaster in the territory of the Sabirabad and Salyan district flooed when the Kura and Araz rivers overflowed after torrential rains, floods and excessive rain in some parts of the country such as Saatli, Imishli, Neftchala, Hajigabul, Shirvan , Zyardab, Kurdamir, Salyan, Sabirabad and Shamakhi, as well as the purchase of special purpose vehicles and equipment for the adoption of preventive measures and to avert possible disasters and emergencies and to implement the relevant measures in landslide areas in a number of areas of Baku and elsewhere.
Official exchange rate on May 26 is 0.7859 AZN/USD