Cabinet of Ministers discusses 2007 Budget Draft

Speaking of the major budget parameters, Finance Minister Samir Sharifov said the draft state budget has been prepared in accordance with the doctrine of the independent Azerbaijani state developed national leader Heydar Aliyev. According to him, Azerbaijan achieved notable results in the economy. GDP grew by 34.4% for the past eight months in comparison with that of the same period last year, per capita income increased by 19.2%, average wages by 20%, population's deposits in the banks by 45.2%. These figures were highly assessed by the international financial institutions, and increased country's investment rating.

Minister stressed that draft budget is based on a $50/B oil price assumption. GDP is projected at 22.2 billion manats with real growth exceeding 26.3%. Per capita GDP will make up 2.6 thousand manats while average wages will reach 195,1 manats next year.

S. Sharifov said inflation control measures are scheduled next year while tax remissions are to be minimized. The increase in tax collection is planned for the first time in the regions, which is driven by the rapid development during the past period. Next year's budget envisages the increase in the tax collection in the non-oil sector as well.

Revenues for 2007 are projected at 24% of the GDP. Budget revenues will rise 6.8 times that of 2001 to reach 5,336,000,000 manats. The State Oil Fund's money will constitute the greater part of the extra budget receipts (80%). Investment programs will be realized at the Fund’s expense. Budget expenditures are projected at 5,715,000,000 or 25.7% of GDP.

In the social sphere, the budget envisages an increase in pensions, basic wages, scholarships, financing of programs concerning the health care, repair and construction of schools.

Defense expenditures will surge by an average of 17.8%. 6.1 billion manats will go to improvement of the judicial system, including 8 newly opened courts in Baku and regions.

7.6 million manats are projected for opening 10 embassies and diplomatic missions of Azerbaijan.

Economic Development Minister Heydar Babayev delivered a 2007 forecast report at the meeting.

Some government members made their remarks and proposals on the draft budget.

Upon completion of the discussions, meeting participants decided to submit the draft budget to President's consideration.

/AzerTAg/