Azerbaijan parliament approves oil-heavy 2007 budget

The budget foresees revenue of 5.3 billion denominated manats (US$6.1 billion; ?4.6 billion) and outlays of 5.7 billion denominated manats (US$6.5 billion; ?4.9 billion).

The Caspian Sea nation's oil industry should account for 56 percent of revenues, according to the budget, which is based on the assumption of a relatively low US$50 per barrel price for oil on world markets.

Defense and security spending in the ex-Soviet republic are set at 906 million manats ($1 billion; ?760 million), up 27 percent from this year. Azerbaijan's dispute with neighboring Armenia over the territory of Nagorno Karabakh keeps fears of a major new armed conflict simmering 12 years after a cease-fire ended a six-year war. The Associated Press

/The International Herald Tribune/