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Finance Minister Avaz Alakbarov gave press conference on state budget 2006

03 September 2005 [12:50] - TODAY.AZ
Finance Minister Avaz Alakbarov today held a press conference on the 2006 state budget.
Finance Minister Avaz Alakbarov stated that the volume of the capitals invested to the economy of Azerbaijan increased 10%, nominal income of population increased 24.7% per person and the volume of the deposits of the population in banks 36.6% in the past months. Average salary was more than 567.2 thousand manats and it is on the level of 121 dollars. Inflation was 12% in the above mentioned period. The Minister told that the execution of the budget increased 32.7% in the past period. Big tax payers paid 32.7% more in comparison with the corresponding period of last year.

Stating that the budget expenditures increased 46.3%, Avaz Alakbarov socialized expenditures formed 56.2% of the total expenditures. He stated that there will be no problem concerning the execution of the state budget till the end of this year. The minister also noted that, the Ministry of Finance conducted 26 complex audits in the budget organizations in the past 8 months. According to him, expenditure in the state budget is not controlled properly .The Ministry of Finance is going to conduct 53 complex audits by the end of this year .Budget envelope will be presented to the Cabinet of Ministers within this week. This envelope includes the budgets of the State Social Protection Fund, Ministry of Defense and State Oil Fund. A special commission was formed for the formation of expenditures and incomes of the state budget.

The minister informed about the next year budget and noted that gross domestic product is predicted to be 70.5 trillion manats next year. It means 30% growth in comparison with the prediction of this year. He said such a positive result has never been observed in the world experience. It is predicted in the state budget that GDP will increase 30.5%, nominal income of population 26.5%, volume of paid service 13.4%, average monthly salary 25% and the price of oil will be US$40 per barrel. The incomes of the state budget are expected to be 15.5 trillion manats (3.4 bn dollars) next year. It means 50% growth in comparison with the predictions of 3 years. The expenditures of the state budget will be 16 trillion 300 billion manats (3.5 bn dollars) next year. The expenditures will form 23.1% of the GDP. Total pension growth will be 20% on average in the state budget of next year. $300 million will be transferred to the budget from the Oil Fund. The volume of the budget deficit is predicted to be 790 billion manats next year.30 billion manats this year and 100 billion manats next year will be allocated with regard to the execution of the law on mortgage credit. 200 billion manats are expected to enter the budget from the privatization next year.” It is important to have a little amount of deficit as long as the strategy of reducing poverty is on in the country and World Bank gives credits under favorable conditions. Therefore, we plan the budget of the next year with budget deficit. The expenditures of the budget will form 22% in the GDP. Azerbaijan has never experienced such case”.

/APA/

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