Azerbaijan ups GDP volume forecast

Adjusting the projected parameters of state and consolidated budget in Azerbaijan for 2012 allowed to improve the prognosis in terms of GDP by 3.5 billion manat at the end of the year, chairman of the parliamentary committee on economic policy Ziyad Samadzade said while discussing the bill on "Amendments and additions to the state budget for 2012" today.

"Thus, the GDP will exceed 50 billion manat," Samadzade said.

According to the amendments, revenues and expenditures of the state budget will increase by 600 million manat and amount to 17.038 billion manat (increase by 3.7 percent compared to the previously approved forecast and by 8.5 per cent compared to the actual execution of the budget last year) and 17.672 billion manat (3.5 percent, 14.8 percent), respectively.

Thus, the share of state budget revenues to the country's GDP will increase by 5.1 percent to 36.5 percent, compared to the actual figure as of 2011, expenditure - by 7.1 percent to 37.9 percent.

Consequently, the state budget deficit will not change.

The increase in the state budget revenues by 600 million manat will be ensured through additional tax revenues on oil and non-oil sectors of the economy.

The remainder of the necessary funds worth 90 million will be ensured by reducing some expenditure of the budget in 2012. The matter rests in reducing the costs for the public debt by 50 million manat and off-budget expenditures of budgetary organizations - by 40 million manat

The increase in tax revenues allow not to increase the volume of transfers from the State Oil Fund of Azerbaijan (SOFAZ) in the adjustment of the state budget for 2012, Finance Minister Samir Sharifov said earlier at the meeting of the parliamentary committee on economic policy during the debate of the bill on amendments to the state budget for 2012.

"Tax revenue on the non-oil sector of the economy in January-April exceeded forecasts by 93 million manat. In addition, we have already received 702 million manat during this period for income tax under the AIOC (Azerbaijan International Operating Company) at the annual forecast of 810 million manat. In addition, according to our estimates, State Oil Company (SOCAR) will pay an additional 30 million manat in 2012 due to the difference between domestic and export price of oil," Sharifov said.

Rising oil prices on world markets contributes to increase in the income of the State Oil Fund of Azerbaijan (SOFAZ) additionally by 3.625 billion manat, which will increase incomes of the consolidated budget for 2012 by 19.9 percent, Azerbaijani Finance Minister Samir Sharifov said on Saturday at the meeting of the Parliamentary Committee on economic policy during the debate of the bill on amendments to the state budget of 2012.

"We take into account the new projections for oil prices when projections for revenue on the oil sector change," the Minister said.

Forecast for oil prices in the state budget is increased from $80 to $100 per barrel of oil.

"As a result of the growth of budget revenues, the consolidated budget expenditures will increase by 705 million manat or 3.5 percent," Sharifov said. "Thus, the consolidated budget surplus is projected at 938 million manat, whereas previously it was set with a deficit".

The main reason for adjusting the budget projections is providing additional funding in accordance with the instructions of the President to cover the damage to the population and socio-economic infrastructure of Zagatala, Gakh and Balaken areas in the north-west of the country caused by the earthquake.

Furthermore, additional funds will be directed to complete the work to eliminate the effects of the large scale disaster in the territory of the Sabirabad and Salyan district flooed when the Kura and Araz rivers overflowed after torrential rains, floods and excessive rain in some parts of the country such as Saatli, Imishli, Neftchala, Hajigabul, Shirvan , Zyardab, Kurdamir, Salyan, Sabirabad and Shamakhi, as well as the purchase of special purpose vehicles and equipment for the adoption of preventive measures and to avert possible disasters and emergencies and to implement the relevant measures in landslide areas in a number of areas of Baku and elsewhere.


/Trend/