High oil prices stipulate 50%-rise of 2007 budget revenues

Ministry of Finance submitted preliminary budget forecast for 2007 to the Cabinet of Ministers. Governmental officials told Trend that rise of revenues is anticipated to total 47% and amount 5.008bn manat, while expenses are forecasted at 5.208bn manat. Head of IMF Department for Middle East and Central Asia Vitaly Kramarenko considers such a revenue growth possible in the event of world oil price conservation at the level of $69-70 per bbl. He said no talks were performed on budget forecasts for the next year.

Meanwhile, Azeri government and IMF talked of the governments plans on reduction of indirect donations in the following year. The government is also going to reach sustainability of municipal sector through tariffs by the year 2010.

The issue of 2006 budget forecasts revision is still untimely and there were no talks on it. IMF is still not going to adjust its forecasts for Azerbaijan. Kramarenko said IMF was drawing its forecasts to the current year with accounting oil price at $60 per bbl, while Azerbaijans budget is based on price at $40. The governmental officials said preliminary forecasts for 2007 set the oil price at $45 per bbl.