National budget group: "The share of local revenues in the state budget of Azerbaijan is extremely low"

"The share of local revenues to the 2009 state budget has risen 53.8% or AZN 167,6 mln (about $207 mln) as compared to the previous year. At the same time, unlike official statements, it is difficult to say that this growth is ensured owing to entrepreneurship development", says the statement.

AZN 25.3 mln ($31.2 mln) of this growth will be ensured owing to Baku. Thus the forecast on the growth of local revenues except for the capital is predicted to be $142.3 mln (about $176 mln).

Considering the growth in wages of regional employees of budget organizations, as well as the tax payment in the framework of budget investment projects (primarily income tax of individuals, simplified tax and VAT), it is possible to say that the share of the private sector in formation of the growth of local revenues is insignificant.

By conclusions of the NGOs, the growth in local revenues did not influence the unequal correlation in budget transfers of centralized and local revenues, formed through the recent years .

Next year the share of local revenues will make 3.9% of the overall revenues of the state budget.