Average growth rate of revenues and expenses of Azerbaijan’s state budget exceeds 40% in 2003-2010

The Expert Group on the issues of Economy globalization and analysis of Center for Strategic Studies under the President of Azerbaijan (SAM) has prepared analysis on “Influence of amendments made to state budget for 2011 on macroeconomic stability, economic development and social well-being”.

According to investigations, incomes and expenses of state budget have significantly increased in 2003-2010: “The average growth rate of revenues made 40.45, expenses made 40.1% during the reporting period. While state budget income/GDP ratio made 17.1% and expenses made 17.3% in 2003, this ratio was equal to 27.4% and 28.35 in 2010. The revenues rose 9.3 times, expenditures – 9.5 times compared to 2003”.

The analysis also showed that total cost of state services on different cost components in 2003-2010 rose 31%, defense – 38.4%, judiciary, law enforcement and prosecution – 28.4%, education – 26.2%, health – 33.8%, social protection and social security – 26.4%, culture, art, information, physical training – 28.7%, housing and communal services – 35.1%, agriculture, forestry, fishing and hunting and the protection of the environment – 32.7%, industry, construction and minerals – 2.2 times, transport and communications – 10.2%, economic activity – 3.2 times, services not related to the main sections – 56.3%: “The budget deficit/GDP ratio was lower than the 3%-norm of the European standards, in general, budget deficit was financed on account of sources not causing the inflation”.

Note that, according to amendments approved by the government on May 27, 2011, the incomes was increased by 295 or AZN 15,54.2 mln, expenses – 25% or AZN 15,941.2 mln.


/APA/