Azerbaijan ups spending on defence and beautification of capital

To provide additional funding to cover the damage caused by the earthquake to population and socio-economic infrastructure of Zagatala, Gakh and Balakan regions in the north-west of Azerbaijan, funds amounting to 350 million manat will be allocated, Azerbaijani Finance Minister Samir Sharifov said on Saturday at the meeting of the Parliamentary Committee on economic policy during the debate of the bill on amendments to the state budget of 2012.

"To this end, by order of the President, funds amounting to 20 million manat were allocated from reserve fund of the state budget of 2012. According to preliminary estimates, in 2012, it would require 350 million manat. These funds will be transferred to the treasury account of the Ministry of Emergencies," Sharifov said.

Furthermore, additional funds will be spent on completion of the works to address the effects of large-scale flood of Kura and Araz rivers in Sabirabad and Salyan regions.

"In this direction a large volume of work has already been implemented. On completion of these works in 2012 50 million manat will be allocated," Sharifov said.

He said additional funds will be directed to address the effects torrential rains, floods and rains in some parts of the country (Saatli, Imishli, Neftchala, Hajigabul, Shirvan , Zyardab, Kurdamir, Salyan, Sabirabad, Shamakhi), as well as the purchase of special purpose vehicles and equipment for the adoption of preventive measures and to prevent possible disasters and emergencies, to take appropriate measures in landslide areas on a number of areas of Baku.

"Adjustment of state budget provides for additional funding for the reconstruction of social and communal infrastructure of Baku and other regions in the amount of 95 million manat and strengthening the military potential of the country - 45 million manat," Sharifov said.

He said funds amounting to about 690 million will be required to fund all of these work, which created the need to revise budget forecasts for 2012.

Under the amendments, revenues and expenditures of the state budget will increase by 600 million manat and amount to 17.038 billion manat (will increase, compared with the previously approved forecast, by 3.7 percent, in comparison to that of the actual execution of the budget last year - by 8.5 per cent), and 17.672 billion manat (3.5 percent, 14.8 percent), respectively.

Thus, the share of government revenues in GDP will grow by 5.1 percent, compared with the actual measure-up in 2011, to 36.5 percent and spending - by 7.1 percent to 37.9 percent.

"Consequently, the state budget deficit will not change," Sharifov said.

He said increase in government revenues by 600 million manat will be achieved through additional tax revenues on oil and non-oil sectors of the economy.

"The rest of the necessary funds in the amount of 90 million manat will be provided at the expense of some of the expenditure of budget in 2012. We are talking about reducing the costs of servicing the public debt of 50 million manat and non-budget expenditures of budgetary organizations - by 40 million manat," Sharifov said.

Following the meeting parliamentary committee recommended the bill for consideration at the plenary session of parliament on May 29.


/Trend/