Finance Minister: Growth of tax earnings from Azerbaijan's non-oil sector results from rise of economic activity and economy diversification

In the first quarter of 2011, revenues and expenditures of the state budget of Azerbaijan were equivalent to 2.768 billion manat and 2.087 billion manat, respectively, Minister of Finance Samir Sharifov told an enlarged meeting of the Cabinet of Ministers chaired by President of Azerbaijan Ilham Aliyev yesterday. The meeting was devoted to the results of the country's socioeconomic development in the first quarter of the year.

The state budget proficit made up 681 million manat.

According to the Minister, the forecast of the first quarter state budget was performed at 118% on revenues and 87.3% on expenditures. As compared to the respective period of last year, budget revenues and expenditures increased by 13.2% and 5.5% (108 million manat), correspondingly.

The Ministry of Taxes transferred 1.161 billion manat in taxes and duties to the state budget, an increase of 15% (151 million manat) against the first quarter of 2010. Of this money, 58.7% (681 million manat) were the earnings from the non-oil sector, up 24% (132 million manat) from the respective period of last year.

"As a real result of the rise of economic activity of non-state sector and economy diversification measures, the earnings from this sector increased by 20.9% against the first quarter of last year, and their share in tax earnings grew by 3.5% from 67.6% to 71.1%", the Minister said.

According to the Minister, the State Customs Committee transferred 241 million manat in taxes and customs duties to the state budget, up 0.2% from the forecast. As compared to the first quarter of 2010, customs transfers to the state budget increased by 17.1%.

Transfers from the State Oil Fund to the state budget in the reported period were equivalent to 1.33 billion manat while the rest earnings totaled 36 million manat, an increase of 32 million manat against a year ago.

"Efficient, targeted use of the budget revenues provided stable financing of the key social tasks, the financial provision of all claims related to costs of organizations, and the fulfillment of expenditures on wages, pensions and grants, external debt's servicing and other tasks", Sharifov noted.

Of budget expenditures, 1 billion manat or 47.9% of total were used for the financing of social tasks. Such expenditures increased by 129 million manat or 14.9% against the respective period of last year.

In the first quarter of 2011, 408 million manat (up 19.2% from the respective period of last year) were spent for the social security and social provision purposes.

In the first quarter of this year, expenditures for defense, healthcare, agriculture, timber economy and fishing, and education rose by 21.9%, 21.8%, 18.3%, and 12.4%, respectively.

State investment expenditures were equivalent to 546 million manat, including 78 million manat spent for the construction and reconstruction of medical, educational, cultural, sports and other social-cultural objects and objects of household designation.

As for the construction and reconstruction of electricity, water supply, gas supply, melioration and transport facilities, there were spent 363 million manat, including 144 million manat for the construction and reconstruction of roads, 24 million manat for the construction and reconstruction of subway stations, 17 million manat for the raise of statutory capital of open joint-stock company Bakielektrikshebeke, 10 million manat for the rehabilitation of irrigation and drainage infrastructure in regions, 20 million manat for the implementation of cosmic industry establishment and development state program, 143 million manat for close joint-stock company Azerbaijani Airlines, and 5 million manat for the financing of other undertakings of state importance.

In the first quarter of 2011, loans worth a total of 206 million manat were borrowed from international financial institutes and banks for the construction and reconstruction of roads, water supply and melioration system, agricultural facilities, and social and other objects in Azerbaijan.

According to the Minister, 154 million manat were assigned from the state budget in the reported period for the financing of domestic and foreign debts' servicing: this issue was in the focus of attention. Besides, there were spent 15 million manat for the maintenance of Azerbaijan's diplomatic representations in abroad, 3.5 million manat for the financing of Azerbaijan-hosted events of international and domestic significance, 25 million manat for the provision of the financial assistance to agricultural facilities; 14 million manat were assigned to open joint-stock company Aqrolizing and 4.5 million manat were assigned to the State Agriculture Credit Agency, which is part of the Ministry of Agriculture.

The approved state budget-2011 of Azerbaijan envisions revenues of 12.061 billion manat and expenditures of 12.748 billion manat. The deficit of Azerbaijan's state budget-2011 is forecasted at 687 million manat or 1.7% of GDP.


/Trend/