Gov't implements measures to develop non-oil sector

/By Aynur Karimova -AzerNews/

The government has already started to implement additional measures that will give fresh impetus to the development of Azerbaijan's non-oil sector, and support investment activity in the country, Finance Minister Samir Sharifov said on July 13.

He made these remarks during the meeting of the Cabinet of Ministers on the results of the country’s socio-economic development in the first half of 2015 and objectives for the future.

"Firstly, it is planned to facilitate monetary policy without damaging inflation and exchange rate goals, to increase credit support to the real sector of economy, to strengthen the stability of financial and banking system and expand access to mortgage lending," he noted.

Sharifov believes that despite the depreciation of the manat rate in February 2015, inflation in the country remains at a satisfactory level of 3.5 percent.

"Undoubtedly, the global economic processes influenced the development of Azerbaijan's economy. First of all, we observed reduction of currency inflow into the country, the narrowing of the positive balance of payments, decrease of the competitiveness of products made in Azerbaijan," the minister said. "In this unfavorable background, macroeconomic indicators achieved in Azerbaijan in the first half of 2015 can be considered successful."

In January-June 2015, Azerbaijan’s recorded GDP was in the amount of 26.3 billion manats and real growth stood at 5.7 percent, while the non-oil sector increased by 9.2 percent.

"In the reported period, funds totaling 74 million manats were allocated from the reserve fund of the President of Azerbaijan to the implementation of a number of important social and infrastructure projects, continuation of works on the improvement in cities and regions, and support of the agriculture and rural roads," Sharifov stressed.

Also, 25 million manats were allocated to the implementation of the "State program on providing the population of Azerbaijan with food products in 2008-2015" in the first six months of this year.

To support business development, some 2,972 entrepreneurs were granted with preferential loans worth 96 million manats through the National Fund for Entrepreneurship Support in the first half of the year.

Touching upon the revenues and expenditures of Azerbaijan's state budget, Sharifov said the revenues totaled 7.807 billion manats while budget expenditures stood at 8.578 billion manats in the first half of 2015.

"The fulfillment of forecast targets of the state budget in the reported period can be considered positive in the background of global economic processes, which also affected the economic development of Azerbaijan," he noted.

State budget revenues from all sources, excluding transfers from Azerbaijan's state oil fund SOFAZ, amounted to 4.246 billion manats, which is 0.7 percent or 29 million manats higher than forecasted.

The Taxes Ministry took in 100.2 percent of forecasted revenues and provided 3.329 billion manats of revenues to the state budget, some 68.3 percent or 2.275 billion manats of which fell to the share of income from non-oil sector.

The State Customs Committee fulfilled the forecast at 100.3 percent. The state budget received 765 million manats through the customs authorities, and this figure is 4.4 percent more than the same period last year.

Transfers from SOFAZ amounted to 3.562 billion manats, while other revenues of the state budget stood at 152 million manats.

Sharifov went on to add that the difference between revenues and expenditures of the state budget was financed by the 2014 budget surplus. As of January 1, 2015, some 771 million manats were allocated from the balance of the single treasury account for this purpose.

Some 2.025 billion manats of budget expenditures were allocated to the implementation of social-oriented activities in January-June.

In the first six months of 2015, some 201 million manats were allocated from the consolidated and state budgets to strengthen the social protection of refugees and internally displaced persons and to improve their living conditions.

Also, funds allocated to defense spending in the reported period were 4.6 percent higher compared to the same period last year.

Investment expenditures of the state budget amounted to 3.102 billion manats in the first half of the year.

The official exchange rate as of July 14 was 1.0486 AZN/USD.