Parliament decides to increase 2007 budget by 8%

Ziyad Samadzade, chair of the standing commission for economic policy, said the country's balanced and fast economic performance during January-April makes it possible to make some amendments to the 2007 budget blueprint.

The Finance Minister, Samir Sharifov, added that the gross domestic product - the output of goods and services produced by labor and property in the country - grew by 39.7%, year-on-year, during the first four months of 2007, APA reports.

"Capital investment through all financial sources rose 12.3%, average monthly salary jumped 26.2%, chargeable services leaped 37.6%, deposits surged 61.8%. The total amount of currency reserves of the National Bank, State Oil Fund (SOFAZ) and Finance Ministry beat $4.1 billion. We saw high performance during the first quarter and the budget revenue reached AZN 1.088 billion, up AZN 400 million from last year and expenditures reached AZN 834 million, up AZN 170 million from the same period last year. Investment expenditures totaled to AZN 239 million and social expenditures were AZN 420 million," he added.

He noted that because of all uptrend in the economy it is suggested to increase the 2007 budget incomes by AZN 435.2 million, up 8.2% from the present forecast or 49.2% more than last year's.

"If approved by parliament, the portion of budget revenues in Gross Domestic Product will reach 25.5% or 3.8% more than a year earlier," he noted.

He added that the budget incomes will come AZN 260 million from the Taxes Ministry, AZN 140 million from the State Customs Committee, AZN 15.9 million from budgetary organizations, AZN 7.3 million from bank dividends and AZN 12 million from earnings from management of excessive coffers.

He underlined that it is proposed to increase the 2007 state budget by AZN 600.2 million to AZN 6.315 billion.

"At the year-end the portion of the state budget expenditures will reach 27.9%, up 6.5% from 2006," he concluded. After discussions, the MPs approved proposed amendments to the 2007 budget.