High Time to Reconsider Azerbaijani Public Budget: Expert

Business Materials 26 April 2007 17:31 (UTC +04:00)
High Time to Reconsider Azerbaijani Public Budget: Expert

Azerbaijan, Baku / Trend / In the second half-year of 2007 the Azerbaijani public budget will be reconsidered and increased.

Expert of Trend 's Analytical Center, Ellada Khankishiyeva, said that the Azerbaijani budget is accustomed to changes by force of the state of world oil prices.

"Now it is high time t reconsider the public budget after the January increase of prices of some energy resources and measures taken by the government for social security of population," she stressed.

The 2007 public budget incomes have adopted in the amount of AZN 5,336bln, expenses AZN 5,715bln, deficit AZN 379mln or 1.7% of the GDP.

As of preliminary calculations by the Finances Ministry, increase of prices of the oil products at the domestic market will bring to additional remittances to the Azerbaijan public budget in the amount of approximately AZN220mln.

Following rise in wages, the public budget revenues will increase at the expense of in come taxes, Khankishiyeva added.

The issue on refusal from indirect subsidizing the fuel and energy balance will be finally resolved. The 2007 public budget forecasts were defines as AZN 330mln in this respect. The public subsidies directed at supporting the agriculture from negative impact of rise of prices of energy resources and public utilities will also be included in the public budget. Thus, AZN 80mln is allocated out of the public budget in this respect.

The amount of the subsistence wage will also be discussed while injecting changes into the public budget.

As to changes into the oil prices in the public budget, the question will be more probably discussed. The world oil prices fluctuate within $60 per barrels, which is still higher than oil prices included in the 2007 public budget and comprises $50 per barrel.