Azerbaijan, Baku, May 29 / Trend A. Akhundov /
Adjusting the projected parameters of the state and consolidated budget in Azerbaijan for 2012 allowed it to improve the prognosis in terms of GDP by 3.5 billion manat at the end of the year, chairman of the parliamentary committee on economic policy Ziyad Samadzade said while discussing the bill on 'Amendments and additions to the state budget for 2012' today.
"This means the GDP will exceed 50 billion manat," Samadzade said.
According to the amendments, revenues and expenditures of the state budget will increase by 600 million manat and amount to 17.038 billion manat (increasing by 3.7 per cent compared to the previously approved forecast and by 8.5 per cent compared to the actual execution of the budget last year) and 17.672 billion manat (3.5 per cent and 14.8 per cent), respectively.
The share of state budget revenues to the country's GDP will increase by 5.1 per cent to 36.5 per cent, compared to the actual figure as of 2011, expenditure by 7.1 per cent to 37.9 per cent. Consequently, the state budget deficit will not change.
The increase in the state budget revenues by 600 million manat will be ensured through additional tax revenues on oil and non-oil sectors of the economy.
The remainder of the necessary funds worth 90 million will be ensured by reducing some expenditure of the budget in 2012. The matter rests in reducing the costs for the public debt by 50 million manat and off-budget expenditures of budgetary organisations by 40 million manat
The increase in tax revenues means there will be no increase in 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 earlier at the meeting of the parliamentary committee on economic policy during the debate of the bill on amendments to the state budget for 2012.
"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, the State Oil Company (SOCAR) will pay an additional 30 million manat in 2012 due to the difference between the domestic and export price of oil," Sharifov said.
Rising oil prices on world markets contributes to an increase in the income of the State Oil Fund of Azerbaijan (SOFAZ) additionally by 3.625 billion manat, which will increase the incomes of the consolidated budget for 2012 by 19.9 per cent, Azerbaijani Finance Minister Samir Sharifov said on Saturday at the meeting of the Parliamentary Committee on economic policy during the debate of the bill on amendments to the state budget of 2012.
"We take into account the new projections for oil prices when projections for revenue on the oil sector change," the Minister said. The forecast for oil prices in the state budget is increased from $80 to $100 per barrel of oil.
"As a result of the growth of budget revenues, the consolidated budget expenditures will increase by 705 million manat, or 3.5 per cent," Sharifov said. "This means the consolidated budget surplus is projected at 938 million manat, whereas previously it was set with a deficit."
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 flooded 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. Additionally there will be a 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 29 is 0.7858 AZN/USD.