Non-oil deficiency of Azerbaijan to reach 5% of GDP by 2009 Ministry of Economic Development
If today non-oil deficiency of Azerbaijan makes 14% of non-oil GDP and nearly 8% of total GDP, by 2009 this deficiency will be equal to 8% and 5%, respectively, Trend reports quoting Adalat Muradov, head of macroeconomic analysis department with the Ministry of Economic Development.
В"41% of Azerbaijans GDP and over 76% of the countrys export fall for oil sector. 34% of the state budget is formed from oil revenues. Lion share of investments is in oil&gas projects. But Azerbaijans future is linked to the non-oil sector, though its development will also depend on oil sector, i.e. on use of oil revenues that shall amount in total $140bn within 20 yearsВ", - Muradov said.
Foreign countries experience, he said, shows the smaller the country the higher the risk to use oil revenues inefficiently. To prevent such a misuse, Azeri government implements the long-term oil revenues use strategy approved in 2004 and lasting till 2025.
The basic principles of efficient use of oil revenues are the following:
- permanent actual expenses: Azerbaijan shall spend one amount each year till 2005;
- invariability of permanent actual expenses;
- account of non-oil deficiency
- transparence in oil revenues usage.
Muradov stated that the project financed from oil revenues shall be included in state investment program and approved in Milli Medjlis.