Oil Prices Invested in Budget Should Not Cause Concern: Parliamentary Commission Head
Azerbaijan, Baku, 11 November / Trend , corr. I.Khalilova /"The short-term and long-term development strategy of Azerbaijan formed on the oil price $70 per barrel, must not cause a concern," Ziyad Samadzada, the chairman of the Parliamentary Commission on Economy Policy, said at the plenary session of the Parliament.
"The Government obtains information on different oil prices incomes ($50, $60 and $65)," Samadzada said.
According to the Azerbaijani International Operation Company (AIOC) the average oil prices, which is formed on export, made up $96.5 in the first quarter (1Q), 2Q- $122.8 and 3Q - $126. The average export price for nine months made up $111.
"The current stable oil revenues to the state budget will exceed expectations and proves the correct course of the Government," Samadzada said.
Azerbaijan is an oil country has more opportunities, but the percentage of oil revenues is high in formation of budget incomes. The oil prices change, which has been observed for the last seven years brought more incomes to the country. In 2002, the average oil price per 1 barrel touched $25.7, in 2007 - $71, in 2008 the prices are expected to exceed $ 100.
"I think that is the correct and deliberate policy of the state. In Azerbaijan, there are enough strategic foreign exchange reserves, financial capacity, against a backdrop of growth that might solve the problems that have accumulated for years. In this regard, we are not satisfied with pessimistic forecasts," Samadzada said.
The Azerbaijani Finance and Economic Development Ministries have developed various forecasts based on different oil prices. According Samadzada, the implementation of social and economic programs without the State Oil Fund, would be impossible in this case the expenditure should cut, which decline the economic development rates.
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