Azernews.Az

BAKU – Since the establishment of the State Oil Fund of Azerbaijan (SOFAZ) its revenues amounted to $40 billion, $20 billion of which has been spent, Shahmar Movsumov, SOFAZ executive director, said on Monday at a meeting to discuss the draft state budget for 2011 of the committees of the Azerbaijani Parliament.

"A half of SOFAZ revenues was maintained for future generations in accordance with the Fund’s strategy," Movsumov said.

He said the bulk of expenditures were made through transfers to the state budget, the remaining part - financing of the projects strategically important for Azerbaijan and the region. These include funding of the Azerbaijani share holding in the project of the Baku-Tbilisi-Ceyhan oil pipeline, the construction of the Baku-Tbilisi-Kars railway, improving of the welfare of refugees and internally displaced people.

"About 25% of revenues in the oil fund must be kept in accordance with the strategy of a long-term oil revenue management, approved by the president in 2004. But so far the fund has more than 50 percent of revenue," Movsumov said.

He said that the increase in transfers to the state budget from the oil fund, determined to the amount of 6.48 billion manat in 2011.

"Regardless of changes in oil prices and foreign exchange rate, we must provide the state budget with transfers to the amount of 6.48 billion manat. It will ensure the stability of the country’s fiscal policy and reaffirm the role of SOFAZ as a buffer," the head of the fund said.