Favorable situation with the maneuverability of finance in Azerbaijan mitigates risk of fluctuations in oil prices
Azerbaijan, Baku, 6 November / corr. Trend A.Akhundov /
Favorable situation in the maneuverability of the Azerbaijani financial resources neutralizes the risks that may be caused by fluctuations in oil prices in world markets.This was told Trend by Deputy Finance Minister Azer Bayramov on Tuesday.
In forming of the budget forecasts for 2013 oil prices stand at the level of $100 per barrel. Next year, 79 percent of the Azerbaijani state budget is planned to be formed of direct payments of the oil sector. The share of oil sector in GDP is projected at 38.6 percent next year.
"If you look at inflation, which runs simultaneously with changes in oil price in the world, operations that was considered to be risky 2-3 years, now seem trivial. Therefore the fact that the oil price is set at $ 100 is reasonable," Bayramov said.
According to him, there are several options to prevent possible threats.
"Budget adjustments will help to avoid risks. The practice of fiscal adjustment is not that effective by itself. If the actual and approved budget revenues are very different, we have to carry it out. We have a large 'safety cushion' in the face of the State Oil Fund of Azerbaijan, which secures us. No one is safe from a disaster. If something extraordinary happens, during adjustment we could,at least, change forecasts downward, " Bayramov said.
According to him, given the high share of investment spending in the country, this process can be carried out safely.
"A sleeker version is also possible : to change the budget, to increase transfers from the State Oil Fund. Today, in terms of maneuverability of finance resources, the situation is much better than before," the Deputy Minister stated.
Revenues of the consolidated budget of Azerbaijan in 2013 will amount to 20.724 billion manat, which is lower than the forecast figure for 2012 by 1.123 billion manat, or 5.1 percent, and 2.502 billion manat, or 10.8 percent less than actual performance in 2011.
Consolidated budget revenues will be generated from the revenues of the state budget of the country at 19.154 billion manat, revenues of the Nakhchivan Autonomous Republic at 332.7 million manat, the revenues of the State Oil Fund of Azerbaijan (SOFAZ) at 11.819 billion manat, the revenues of the State Social Protection Fund (SSPF) at 2.633 billion manat.
Expenditures of the consolidated budget in 2013 will amount to 24.46 billion manat, which exceeds the forecast figure for 2012 by 3.55 billion manat, or 17 percent, and the actual indicators of 2011 - by 6.919 billion manat, or 39.4 percent.
Expenditures of the consolidated budget will consist of state budget expenditures at 19.81 billion manat, expenses of the Nakhchivan Autonomous Republic budget at 332.7 million manat, expenses of SOFAZ at 13.599 billion manat, expenses of SSPF at 2.633 billion manat, expenses of projects funded by the foreign loans at 1.3 billion manat.
Consolidated budget deficit for 2013 is projected at 3.736 billion manat.
The official exchange rate on November 6 is 0.7849 AZN / USD.