Azerbaijan, Baku, 30 April / Trend corr I. Khalilova/ Azerbaijan Finance Ministry suggested increase by 3.5 times in the transfers from the State Oil Fund of Azerbaijan (SOFAZ) to the pubic budget during correction of budget forecasts for 2008, Government reported on 29 April.
SOFAZ transfers to the public budget will rise from AZN 1.1bln to AZN 3.8bln. The opportunity arose from growth of SOFAZ revenues, which are expected to amount to AZN 10bln by the end of the year. Almost tripling of SOFAZ revenues is caused by the rise in world oil prices and expansion of Azerbaijan's export capability.
The 2008 budget of the Fund determined incomes at AZN 3.609bln and expenses - AZN 1.680bln.
By the end of the year, assets of the Oil Fund may reach AZN 9-10bln, while by 1 April they comprised AZN 2.775bln ($3.336bln).
According to him, currently the dividends from Baku-Tbilisi-Ceyhan pipeline are also taken into consideration.
"We have already received incomes from the operation of the pipeline in 2007, but accounts are being held for the incomes expected for 2008, which can also be included in the revenue part of Fund's budget," the SOFAZ Executive Director, Shahmar Movsumov, said recently.
Most part of SOFAZ's incomes (over 90%) is expected to be received from the sale of profit oil. The incomes received from the oil contracts are forecasted at AZN 3.473bln, including 13.423mln from dividends from Baku-Tbilisi-Ceyhan pipeline. AZN 121.928mln will be received from management of SOFAZ funds, AZN 900.000 - other profits.
SOFAZ has allocated AZN 145mln for the arrangements on improvement of the social state of refugees and internally displaced persons. SOFAR financed the projects on reconstruction of the Samur-Absheron irrigation system (AZN 120.6mln) and laying of a water pipeline connecting the Oguz-Gagbala region with Baku (AZN 211.820mln). AZN 88.682mln was allocated for the construction of Baku-Tbilisi-Kars railway and AZN 5mln for the State Program on Education of Azerbaijani Youth Abroad.
The expenditures for SOFAZ management may comprise AZN 9,751,600.
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