Azerbaijani Parliament starts discussing amendments to 2008 state budget

iZiyad Samadzade, chairman of the parliament commission for economic policy, said the state budget re-adjustment was made necessary by the world market trends and the country’s economic progress.According to him, the country’s growth rate was 14-16% in the first four months.

"Along with revenues, the budget expenditures also have increased. The expenditures will reach 33.9% of GDP this year. In terms of this ratio, Azerbaijan ranks the 4th among the CIS countries," he added.

Samir Sharifov, the Minister of Finance, added that oil prices soaring above $100 a barrel has increased the oil revenues of Azerbaijan.
According to him, the budget proposal will envision $70 a barrel, compared to $50 as set earlier.

He said it is proposed to increase the revenues of the 2008 state budget in four areas, to raise receipts from the Ministry of Taxes by AZN 380 million, receipts from the State Customs Committee by AZN 10 million, transfers to the budget by State Oil Fund (SOFAZ) by AZN 2.7 billion, and receipts from off-budget funds of the budgetary organizations by AZN 1.5 million.

Azerbaijan’s Minister of Finance Samir Sharifov told a parliament session discussing the Bill on “the 2008 state budget amendment” that the nominal increase in the budget expenditures will be AZN 2.542 billion, taking into account the margin between the budget revenue rise and budget deficit filling source.

"So, it is proposed to increase the budget of AZN 8.559 billion to AZN 12.061 billion. This will be a 29.8% rise on the approved budget expenditures. The share of the state budget will reach 33.9% of GDP expected at the year-end, up 9.7% from 2007. If this budget is passed, the share of budget expenditures will increase 34%," he added.

According to him, AZN 983 million of the extra expenditures will go to the current expenses, AZN 1.541 billion to capital expenditures and AZN 17 million to state debt write-off.

He said AZN 3 million will be added the expenditures for maintenance of embassies, consulates and other diplomatic representations, and additional AZN 2.8 million will go to the membership dues to the international organizations.

The draft budget proposal was submitted for consideration by MPs.

/APA/