Explicit subsidies to be reduced or liquidated in 2007
International Currency Fund (ICF) insists on the reduction of indirect subsidies for fuel and energy complexes of Azerbaijan. The government was offered to increase the amount of explicit subsidies, liberalize the market and gradually escape from the secret subsidies, deputy director of ICF Department for Near East and Central Asia Vitali Kramarenko told Trend.
Indirect subsidies have been kept only for Azerenerji JSC. According to the information provided by the Finance Ministry of Azerbaijan, the future policy of the government regarding indirect subsidies will be discussed at the 8 September next meeting of the commission for formation of forecasts of budget incomes.
As comprised to the forecasts of the 2006 state budget, the direct subsidies for Azerenerji have increased from AZN 103.1 mln to 438.5 mln.
The necessity for correction emerged in relation with increase of the prices for imported gas purchased by Azerbaijan from Russia. Subsidies were put in $60, but today Azerbaijan pays off $110 for 1 thousand cubic meters of Russian gas.