CABINET OF MINISTERS DISCUSSES DRAFT STATE BUDGET FOR 2009

Baku,24 September,(AzerTAj)Prime Minister Artur Rasizade chaired a meeting of the Cabinet of Ministers to discuss the draft state budget for 2009.

Minister of Finance Samir Sharifov said the draft had been prepared to ensure social
and investment orientation of the budget spending with the priority given to:
maximum effective use of oil sector revenues in the mid- and long-term perspective;
strengthening of financial discipline and ensuring transparency; steady development
of oil sector; maintaining stable macroeconomic situation in the country; reducing
as far as possible the effects of inflation; management and encouraging dynamic
economic development.
He went on to say that further economic growth and more effective application of the
tax law in 2009 allow estimating the state budget revenue at AZN12.177 billion
exceeding the forecast for 2008 by 16.1%. The GDP is forecast to reach AZN43.6
billion, and average wage to make up AZN353.3 in 2009. Budget spending is estimated
at AZN12.355 billion, which is 11.7% more than this year. The share of socially
oriented spending will make up 33% exceeding this year’s by 24.4% (AZN790 million).
On the consolidated budget, the Minister said its revenue and spending in 2009 are
forecast to be AZN22.680 billion and AZN14.758 billion respectively.
Minister of Economic Development Heydar Babayev forecasted 18.9 % GDP growth in 2009
adding in per capita terms it will make up $6300.8 next year and reach $7143 in 2012
nearly doubling the 2007 rate. He said the growth in oil and non-oil sectors is
estimated at 24.4% and 10.5% respectively. Total volume of investments into the
country’s economy in 2009 is expected to be AZN8.4 billion, including AZN6.5 billion
by domestic sources.
The draft budget will be submitted to the President of Azerbaijan.