Rising oil prices on world markets contributes to increase in the income of the State Oil Fund of Azerbaijan (SOFAZ) additionally by 3.625 billion manat, which will increase incomes of the consolidated budget for 2012 by 19.9 percent, 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.
"We take into account the new projections for oil prices when projections for revenue on the oil sector change," the Minister said.
Forecast for oil prices in the state budget is increased from $80 to $100 per barrel of oil.
"As a result of the growth of budget revenues, the consolidated budget expenditures will increase by 705 million manat or 3.5 percent," Sharifov said. "Thus, the consolidated budget surplus is projected at 938 million manat, whereas previously it was set with a deficit".
Under the amendments, revenues and expenditures of the state budget will increase by 600 million manat and amount to 17.038 billion manat, and 17.672 billion manat, respectively.
The main reason for adjusting the budget projections is in accordance with the instructions of the President of Azerbaijan, is providing 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 the country.
Furthermore, additional funds will be directed on completion of the works to address the effects of large-scale disaster in Sabirabad and Salyan regions as a result of the flood of Kura and Araz rivers, 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.
Increased government revenues will be achieved through additional tax revenues on oil and non-oil sectors of the economy.
The bill was introduced in Parliament by the President of Azerbaijan Ilham Aliyev.