Azernews.Az

By Sara Israfilbayova

The Parliament continued discussions of the draft state budget for 2018 on November 22, which discussed additional bills included in the budget package.

Addressing the event, speaker of the Parliament Ogtay Asadov said that the state budget of Azerbaijan for 2018 can be revised in May next year, in case oil prices remain above $60 per barrel.

Asadov noted that the country, which actually is in a state of martial law, must take into account all possible risks, and the cost at a $45 per barrel of oil was taken into account in the draft budget for 2018 precisely to prevent possible risks.

Revenues of the Azerbaijani state budget for 2018 are forecasted to stand at 20.127 billion manats ($11.84 billion) [including centralized incomes – 19.476 billion manats ($11.45 billion), local – 650.671 million manats ($382.7 million)], expenditures – 20.905 billion manats ($12.3 billion) [including centralized expenses – 20.182 billion manats ($11.87 billion), local – 724.092 million manats ($425.9 million)].

The deficit of the Azerbaijani state budget for 2018 is forecasted to total 778.7 million manats ($458 million) or 1.1 percent of GDP.

Oil revenues in the state budget of Azerbaijan for the next year will amount to 11.096 million manats ($6.53 million). At the same time, the growth of oil revenues of the state budget will amount to 39.7 percent as compared to 2017.

In turn, the country’s Finance Minister Samir Sharifov stressed that an increase in the expenditures of the Azerbaijani state budget without having a permanent income can lead to unnecessary risks.

“I do not deny the fact that some expenses should be increased,” he said, adding that an increase in expenditure without a constant income will take a short time and can lead to unnecessary risks. “We should optimally regulate our expenses and try to increase revenues through the non-oil sector, while oil revenues should be kept in reserve, as they are always required during a difficult period.”

Speaking of the statements of MPs about the big expenditures of state administration he said that the expenditures of state administration must be considered on the basis of specific figures.

“It is wrong to see this figure as a percentage. As a result of the reforms carried out in 2017, the country saved over 17 million manats ($10 million) in terms of expenditures on state administration,” he noted.

Further, Sharifov mentioned the Baku-Astara railway and said that the government is preparing for transferring the railway, noting that the issue is the railway section, which passes through Lankaran and Astara.

“The Azerbaijan Railways CJSC and the country’s Ministry of Economy are dealing with the issue of transferring the Baku-Astara railway,” he added.

Earlier, during the discussion of the state budget-2018, Azerbaijani First Deputy Speaker of the Azerbaijani Parliament Ziyafat Asgarov said that the railway runs along the sea coast and closes the way to the sea and therefore, it should be transferred.

“The tide is washing away the foundation of the railway,” he said. “Transfer of this railway can become a great contribution to the development of the coast infrastructure, increase the speed of trains and affect the more efficient operation of the railway. The North-South transport corridor will be commissioned in a year and afterwards, it will be difficult to transfer the railway as cargo transportation will grow.”

Taking his turn, Economy Minister Shahin Mustafayev stated that the country’s Masalli Industrial Zone will be constructed till late 2017.

“Five waste recycling plants started to operate in the country’s Balakhani Industrial Park in January-September 2017,” he said. "Around 400 new jobs have been created at these plants.”

“Hayat Pharm and Caspian Pharmed plants which will produce medicines and a syringe manufacturing plant are being built in the country’s Pirallakhi Industrial Park,” he said. “Around 350 new jobs are planned to be created at those plants.”

The minister said that $150-200 million will be invested in the construction of nine plants in Mingachevir Industrial Park, which contributes to the creation of more than 5,000 new jobs.

“More than 30 projects will be implemented next year,” he said. “Moreover, Hajigabul and Sabirabad industrial zones are being currently created.”

Touching upon the country’s banking sector, chairman of board of the Azerbaijani Central Bank (CBA) Elman Rustamov stressed that the money supply will continue to grow in Azerbaijan till late 2017.

“Since early 2017, the money supply in the country has grown by 11.5 percent,” he said, further adding that so far, this figure has increased by 0.5 percent. I think that the money supply will continue to grow till late 2017.

Rustamov added that since early 2017 the CBA has invested about 3 billion manats ($1.76 billion) in the country's economy.

‘In January-February, we put in circulation about 1 billion manats ($588.2 million),” he said. “When the first signs of stability in the economy were observed, CBA has invested 1.8 million manats ($1.06 million) since the end of February.”

As of September 2017, Broad Money Supply (M3) totaled 21.13 billion manats ($12.43 billion) or by 5 percent more compared to September 2016 and by 2.8 percent more than in late August 2017.

The transaction money (M1) increased by 17.4 percent for the year and by 4.3 percent in September 2017 and amounted to 9.8 billion manats ($5.76 billion).

Minister of Labor and Social Protection of the Population Salim Muslimov said at the event that it is planned to issue 500-600 apartments per year for invalids of the Karabakh war and families of martyrs.

Muslimov went on to say that so far, for people of this category have been issued 6,096 apartments and added that next year the expenses will be increased.

With regard to medical sphere, Chairman of the Committee on Health Ahliman Amiraslanov noted that health care expenses in the state budget for 2018 are lower than expected this year.

About 745.4 million manats ($438.42 million) are planned to be allocated for this purpose this year, and next year-740.7 million manats ($435.65 million), according to forecasts.

Addressing the meeting, Vice Speaker of the Parliament Bahar Muradova said that Azerbaijan is rapidly developing, adding that there are some problems created by the development itself, which must be analyzed.

She touched upon the issues related to the work of the judicial bodies, the difficulties faced by lawyers and investigators and an increase in the number of judges.

Stressing the need to increase the number of judges, Muradova proposed to take this issue into account in the budget.

“The actions, taken in Azerbaijan’s legislative sphere in connection with a number of defenders performing the functions of lawyers, require attention,” she said.

“Traffic jams can be avoided in Baku if the work of suburban electric trains is restored,” said MP Chingiz Ganizade, at his part.

The deputy noted that the restoration of electric trains will improve the ecological situation, and also positively affect the development of tourism.

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