ECONOMY

2003 STATE BUDGET RECEIVES EXTRA 2%

01.06.2004 [13:42]
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The Milli Majlis standing commissions on economic policy, agrarian policy, social policy, science and education, legal affairs and state building, and natural resources, energy industry and ecology gathered for a joint sitting on May 31 to discuss the draft law “On Implementation of the 2003 State Budget of the Azerbaijan Republic”.

Reporting on the draft, deputy Minister of Finance Heydar Asadov noted the economic policy whose foundation had been laid by national leader Heydar Aliyev was successful in 2003; as a result of the reforms conducted, the volumes of investments in separate industries and incomes per capita have been increased, and inflation rate remained stable.

The State Budget revenue was 6105,5 bln. manats in 2003 against 6092,0 bln approved by the law or 17,4 percent of GDP produced in 2003 that exceeds the 2002 index by 2,4 points.

67,0% or 4089,5 bln manats of the budget revenue was implemented by the Ministry of Taxes, 17,4% or 1061,2 bln. manats by the State Customs Committee, 0,2% or 12,7 bln manats by the Ministry of Economic Development, and 15,4% or 941,0 bln manats came to the budget from other sources.

55% of the funds collected by the Tax bodies - 2249,6 bln manats - were provided by 9 largest taxpayers.

The State Oil Company paid 1853,0 bln manats of taxes, and the State Oil Fund transferred 500,0 bln manats to the State budget.

The budget expenditures in 2003 were 6172,7 bln manats /96,1%/ vs. 6423,0 approved by the law that is 17,6% of the GDP produced in 2003. The funds - 3397,4 bln manats - were mainly spent on financing social sphere.

1906 bln. or 30,9% of the actual expenses were spent on paying out wages and salaries and increments. Expenditures of the budged organizations in the financial year constituted 296,8 against 301,4 bln manats approved.

With the aim of maintaining implementation of the economic reforms and financing certain important projects, credit agreements amounted to $ 2237,5 were signed in 2003. The country’s external debt under these agreements made up 1575 mln. US dollars. 23% of the state debt shall be repaid in 5 years, 21% - 10 years, 3% - 20 years, and 53% in over 20 years.

240,6 bln. manats were spent in 2003 to finance state budget deficit, whose actual index was 68,2 bln manats.

During the debate, the deputies stressed the importance of elimination our country’s dependence on oil and development of other industries, agriculture in particular.

Finally, they decided to submit the draft law to the Milli Majlis for discussion.