Public budget for 2006 to be reconsidered
The Finance Ministry regards correction of the budgetary forecast for 2006 as necessary in relation to change of wholesale oil prices. The same time, they envisage reconsideration of the forecast on income tax, excise and VAT, Trend reports referring to Azer Bayramov, the Deputy Minister of Finance.
The Tariff Council increased prices for diesel, lamp oil, jet fuel, stove fuel in early 2006. Additional incomes to the public budget are expected at 82m AZN in 2006. The forecast for excise was set at 129m AZN, but it would grow by 21m more AZN. 30m AZN will be gained additionally with excise forecast at 385m AZN. 869.4m income forecast will grow by 31m AZN in relation to rise in oil prices.
Though increase of incomes comprises only 2.6%, necessity of reconsideration of the budgetary forecast is also arisen in relation to rise in price of the gas imported from Russia. According to Bayramov, one of the actual issues is review of implicit price subsidy, as it was set $60, while Azerbaijan pays $110 per 1,000 cu m of gas to Russia. He did not exclude possibility of increase of implicit price subsidy up to 2trln manats (400m AZN) at correction of the public budget. 1,677 trln manats (335.4m AZN) is set for these purposes in the public budget for 2006.
The budgetary forecast is planned to be reconsidered in mid-2006. The budgetary incomes for 2006 are planned at 3,406,315m AZN, expenses 3,594,315m AZN.