Parliament okays report on 2006 budget

Ziyad Samadzade, chair of the parliament commission for economic policy, said the country's economic performance further improved, per capita gross domestic product (GDP) rose by AZN 600 and per capita budget spending increased AZN 230, non-oil sector GDP grew AZN 1.2 billion and cash incomes went up 20% during 2006.

"For the first time excessive funds of $850 million of the coffers went to management," he added.

He noted that the budget revenue forecast was met by 100.8%, up 88% from 2005.

"The Taxes Ministry met the prediction by 101.7% and Customs Committee 102%. The transfers by the State Committee for Public Property Management were at a 25% surplus. The profit and income tax inflow from the Production Sharing Agreements accounted for 42% of total tax collections. The portion of the non-oil sector is also growing rapidly. The total value added grew 8.2% to AZN 6.7 billion in 2005 and rose 13.5% to AZN 8.6 billion in 2006," he concluded.

The Finance Minister Samir Sharifov said the 2006 outline budget's revenues were AZN 4.867 billion, up 54% from 2005 and expenditures were AZN 4.742 billion, up 68.3%. Without incomes of the State Oil Company, the budget suffered a deficit of AZN 861 million.

The budget incomes were executed 100.8% or AZN 3.869 billion against AZN 3.837 billion. The portion of state budget incomes in GDP rose 4.5% to 21%. The budget expenditures were executed at AZN 4.248 billion against AZN 3.790 billion.

After discussions Milli Majlis passed implementation of the 2006 budget.