Draft law on budget implementation in 2005 is ready

Business Materials 20 April 2006 15:16 (UTC +04:00)

The Finance ministry has completed the draft law about budget implementation in 2005; it will be presented to government before the April 25. In accordance with the law on budgetary system the law has to be sent to the presidential administration before the May 5, and to Milli Mejlis before May 15, the ministry told Trend.

Revenue forecasts have been fulfilled on 100, 5% in 2005 against expected 10. 222trl of old manats (2.044.44 AZM); 2.055.234 AZM have been allocated to the budget.

1. 424.4m AZM have been collected by the Tax ministry against 1420. 4m AZM forecasted i.e. with 100, 3% over planned. Most of the taxes came from the oil sector, as the State Oil company` s share reached 38, 1% (542. 1AZM) i.e. 41% (157. 7 AZM) more than in 2004.

376. 2m AZM of taxes and fines have been collected against 107, 5% forecasted. 27, 6% (3. 062m AZM)more came from the state property rent. SOCAR transfers have been fully allocated to the budget (750bl AZM). 10. 846m AZM came from the EU food safety grants.

71. 259.6 AZM came from the non-budgetary funds- 2, 7% less than expected. Other sectors have also failed to full the forecasts, in general on 54, 2% or 17550.8 AZM against 32. 4m AZM. The national bank suffered losses in 2005 due to denomination of national currency; it has submitted to the budget only remaining 1. 984m AZM against expected 6m AZM- forecast fulfilled only on 33, 1%.

In spite of over supplying the forecasts on major beneficial part of the state budget, there is still 0, 7% of the budgetary deficit from GNP (94. 766m AZM)- 0, 6% more than forecasted. State budget spend 42, 5% more in 2005 than in 2004. 805bln AZM more have been spend on state investments in 1, 8 times more than in 2004.

The minimum wage has been increased till 30AZM and 132m AZM was allocated from the state budget on these needs. Salaries of diplomatic staff were increased on 30% and 18, 6m AZM have been provided by the reserve fund to support the embassies. Practically all expenditures on social matters have been fulfilled, though there are some misfits in the membership payments. All budgetary means provided for agro-leasing, mortgage, business credits and parliamentary elections have been fully used.

Free budgetary revenue have been fulfilled on 27, 8% and expenditures 97, 6% last year i.e. 53, 5% and 34, 1% respectively more than in 2004.