Azerbaijan, Baku / Trend / The Azerbaijani Government stopped subsiding of the fuel-energy sector by recommendations of financial institutions.
The International currency fund stated that either Azerbaijan will have a prosperous fit to world economy oil sector over 25 years or industrial sector used to free of charge energy carriers with a range of problems after exhaustion of hydrocarbon reserves. And Azerbaijan choused the first one. If Azerbaijan wants to integrate into the world economy the country should accommodate itself to market.
The indirect subsidies were envisaged only for the Azerenergy in 2006 and 2007. However, the subsidies in amount of AZN 330mln were directed to strengthening of social security of population unable to pay for communal services due to increase of tariffs on electric energy by 3 times in 2007.
The indirect subsidies caused squandering of resources and allowed misappropriation of financial funds in a large scale. A group of people engaged in energy and communal enterprises who were not interested in development of electric energy sector of the country commanded the public budget.
"It is not necessary to allocate subsidies for Azerenergy due to high prices for electric energy, which enables to collect payments for utilized electric energy from subscribers," Azar Bayramov, the deputy Finance Minister, said.
(Ellada Khankishiyeva- an expert of the analytical centre of Trend )