Azerbaijan, Baku / Trend corr I. Khalilova / The Finance Ministry of Azerbaijan submitted the draft law "Changes and Amendments of 2007 Public Budget" to the Cabinet of Ministers on 4 May. The project provides for the increase of budget receipts by AZN 400mln, and on-budget expenditures by AZN 200mln.
Previously, the receipts were to be increased by 6% to make up AZN 300mln. The necessity to increase the receipts has been caused by the government's plans regarding financing of investment projects, the estimated value of which has profoundly increased due to a rise in energy prices. The expenditure for financing of agriculture, the rise of pensions and salaries and the increase of state social aid has been included into the public budget.
The adjustment of the budget will be implemented at the expense of the revenue from an increase in energy prices and excise duties for the import of wine and vodka. The VAT (value added tax) will be increased for the State Oil Company of Azerbaijan Republic, Azerenerji (energy company) and Azerigas.
The public budget will benefit from income taxes due to the increase in salaries. The budget passed for 2007 defined the receipts at AZN 5,335,700,000 bln, the expenditures at AZN 5,714,700,000bln and the deficit at AZN 379mln (1.7%).