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Azerbaijan Parliament Adopts Law On Implementation of 2006 Public Budget

Business Materials 25 May 2007 19:42 (UTC +04:00)
Azerbaijan Parliament Adopts Law On  Implementation of 2006 Public Budget

Azerbaijan, Baku / corr Trend I.Khalilova, I.Alizade / On 25 May a plenary meeting of the Azerbaijani Parliament adopted a law on Execution of the 2006 Public Budget, which was submitted by the Finance Minister Samir Sharifov.

Incomes of the aggregate budget of Azerbaijan totalled AZN 4.867mln, while expenses came to AZN 4.742mln. The incomes increased by 54% as compared to 2005 and expenses 68%. The surplus of the aggregate budget was AZN 125mln.

Without consideration of income from the State Oil Fund of Azerbaijan (SOFAR), the budget was finalized with a deficit of AZN 861mln, which was reduced by 2.1% in the GDP as compared to 2005.

The Minister said that the 2006 public budget made up AZN 3.869mln as compared to the forecasted AZN 3.837mln amid the execution of the budget by 100.8% and a rise by 1.8% as compared to 2005 (88.2%). Special weight of the budget incomes in GDP increased 4.5 times and constituted 21.8%.

The Tax Ministry executed the budget forecasts by 101.7%, or 87.1% (AZN 1.2bln) more as compared to 2005. Of the funds, 30.5% (AZN 812mln) falls to nine big taxpayers. It is AZN 175mln, or 27.4% more than 2005.

The State Customs Committee implemented the forecasts by 102.1%, or AZN 140mln more than 2005 and remittances to the public budget made up AZN 516mln. Transfer by SOFAR to the public budget comprised AZN 585mln.

The non-budget remittances by the state organizations constituted AZN 66mln last year. Despite considerable increase of budget income, there is still tax potential and additional measures should be taken while attracting taxes to the public budget.

The 2006 public budget expenses made up AZN 3.790mln as compared to the forecast of AZN 4.025bln amid the execution of the public budget by 94.2%. Expenses increased by AZN 1.649mln, or 77.1% as compared to 2005, while their special weight in the GDP rose 3.4% and comprised 21.4%.

Expenses for industry and construction rose 5.4 times in 2006, defense - 2.2 times, economic activities - 80.3%, housing and communal economy 54.9%, health 40.6%, youth policy and sports 39.7%, agriculture and forestry, fisheries, and environmental protection 37.2%, court systems 35.1%, culture and arts 31.9%, education 28.6%, and production of social security 12%.

Some 26.9% of expenses were spent on construction and overhaul, or 4.3 times more than 2005, 24% salary fund (up 61%), 2.6% expenses for reserve funds (3.4 times).

Sharifov marked that the budget expenses per capita incomes grew from AZN 254 in 2005 to AZN 445 in 2006, whereas per capita GDP rose from AZN 1,488 in 2005 to AZN 2,078 in 2006.

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