Azernews.Az

BAKU – Azerbaijan’s Finance Ministry does not expect rising budget expenses and wages to impede efforts aiming to keep inflation in the country at single digits, Deputy Minister Azer Bayramov told reporters Thursday.

"According to preliminary projections, salaries are expected to increase in all sectors [of the economy]. Naturally, growth in the state budget expenditure as well as increases in people’s salaries will affect inflation levels," Bayramov said, adding that the main goal now was to minimize this impact.

"I don’t think actual inflation will be sharply different from the projected levels. It will be kept at single digits," he added.

Azerbaijan’s central bank predicts inflation at 7-8 percent in 2011.

In January-April, domestic prices rose 9 percent in comparison with the same period of 2010.

The average monthly wage in the country made up around 350 manats ($440) in the first four months of 2011, 12.5 percent above the corresponding period of last year.

Under the amended 2011 budget recently approved by the Azerbaijani parliament, projected budget revenues were increased by over 3.493 billion manats ($4.37 billion), or 29 percent, to 15.554bn manats (19.564bn). Budgetary expenses this year exceed 15.9bn manats ($20bn), 25 pct over the projection.