Azerbaijan, Baku / Trend corr I. Khalilova / A Mission from the International Monetary Fund (IMF) arrived in Azerbaijan on 29 August to get familiar with the macroeconomic situation and policy, development of public budget forecasts and macroeconomic frames for 2008, according to the IMF Baku Office. The head of the mission - deputy director of the IMF Department on Work with Middle East and Central Asian countries, Vitaliy Kramarenko - will start the activities on 31 August.
The mission also includes IMF's senior economist, Maira Zermeno, and economist Shuang Ding. On 29 August meetings will be held at the Finance Ministry only, and by 6 September, when the mission completes its work, at the Economic Development Ministry, the National Bank of Azerbaijan, the State Oil Company of Azerbaijan Republic (SOCAR) and the Azerbaijan State Oil Fund.
The IMF is ready to assist Azerbaijan in the creation of a macroeconomic model. The models will be used as a ground in the development of budget forecasts. Targets of inflation forecasts have to coincide with public budget forecasts.
While developing the budget for 2007 the IMF suggested cutting of public expenses growth rate. But the Government did not consider it efficient and agreed to cut the public expense growth rate in 2008, 2009 and 2010.
The IMF presented Azerbaijan with possible budget forecasts.
According to IMF's forecasts, public revenue in Azerbaijan will increase by 123% in 2008 compared to 2007, by 23% compared to 2009 and by 6.1% compared to 2010. However, public revenue is forecast to decrease by 0.3% in 2011 and by 0.8% in 2012. Public expenses will rise by 35.5% in 2008 compared to 2007, by 30.1% compared to 2009, 25% compared to 2010, by 25% compared to 2011 and by 24.9% compared to 2012.
According to the approved public budget, revenue in 2007 is expected to comprise AZN 5.335bln and expenses AZN 5.714bln, a deficit of AZN 379mln or 1.7%.