Non-oil sector provides most revenues for state budget

/By AzerNews/

By Nigar Orujova

Azerbaijan’s state budget revenues amounted to 12.1 billion manat, while expenses totaled 11.7 billion manat in January-September 2015, said Economy and Industry Minister Shahin Mustafayev at the meeting of the Cabinet of Ministers on October 12.

Ministers, under the chairmanship of President Ilham Aliyev, gathered to discuss the results of socioeconomic development in the first nine months of this year and the upcoming challenges.

Mustafayev said the revenue part of the state budget was fulfilled by 99.6 percent, while expenditures by 74.3 percent. He added, that 68.4 percent of revenues to the treasury came from the non-oil sector. Compared to the same period last year, this share increased by 11.6 percent.

“During this period, from all financial sources in fixed capital 11.8 billion manats were invested for the development of the economic and social spheres. Under the state investment program, work continued on the construction of road transport, energy and gas infrastructure, social facilities, improving water supply and sewage and other projects,” the minister said.

Azerbaijan’s GDP grew by 3.7 percent in the first nine months of 2015, he said. “The real growth rate of the non-oil sector amounted to 6.4 percent. As in previous periods, overall economic growth was achieved due to the development of non-oil sector, as a result of the country’s diversification policy, during January-September.”

In general, he said, the added value in the non-oil sector increased by more than eight times from 2003. The share of non-oil sector in GDP reached 68.8 percent.

In the reporting period, the industry grew by 2.1 percent, which includes a non-oil industry growth of 10.2 percent, value-added agriculture growth of 6.7 percent, information and communication services at 8.8 percent, retail trade at 11.4 percent, paid services rendered to the population at 6.2 percent. Inflation held steady at 3.7 percent.

The minister said that during the reporting period, the income of population grew by 5.8 percent and per capita income by 4.5 percent. In eight months, the average monthly salary increased by 4.4 percent and amounted to 460 manat. Moreover, 87,000 new jobs were opened. All social programs have been successfully implemented, said Mustafayev.

Over 200 enterprises created

The minister went on to add that over 200 enterprises and facilities for producing construction materials, metal structures, as well as textiles and other industrial products were commissioned in Azerbaijan in January-September.

The level of self-sufficiency for a number of construction materials is nearing 100 percent, he added.

“The creation of 30 large farms in 19 regions of Azerbaijan with a total area of 40,000 hectares is almost complete,” said Mustafayev. “The crop yield has reached 58-60 quintals per hectare.”

He said the work on the first stage of the agroparks being built in Shamkir and Khachmaz regions will be completed by late 2015, adding that another is currently being designed for Khizi agropark.

Furthermore, the minister said that in order to strengthen the financial support to the private sector, the National Fund for Entrepreneurship Support has allocated preferential loans worth 160 million Azerbaijani manats to 4,250 entrepreneurs in the first nine months of 2015.

Mustafayev said 64 percent of the loans issued have gone to the regions, while 53 percent for the settlements of Baku. He added that another 220 million manats worth of preferential loans are expected to be dispersed by late 2015.

Moreover, the minister said that over 170 industrial, agricultural and trade enterprises were created in the first nine months of 2015 as part of the state program for the socio-economic development of regions.

Mustafayev said 34 schools, 26 kindergartens, 11 health care facilities, eight youth and sport, as well as 24 cultural and other social facilities were constructed or overhauled in the country, and that currently, the construction and repair of around 250 social facilities is underway.

Meanwhile, over the past period, 11 youth and sport facilities, 11 schools, seven kindergartens and the Rehabilitation Center for the Disabled have been commissioned in Baku and Absheron peninsula, according to the minister.

“The work is underway at 60 social facilities,” said Mustafayev. “Projects have been worked out for improving the ecological condition of nine lakes on Absheron peninsula. The first stage of ecological restoration of the Lake Boyukshor has been completed and the work on restoring the Lake Zikh is underway.”