Business

PARLIAMENT MULLING OVER DRAFT 2002 BUDGET

By Anar Jabrayilli & Natavan Agayeva

Azernews Staff Writers

The Milli Mejlis focused Tuesday on the draft 2002 state budget forwarded by the President's office. Chairman of the permanent parliamentary commission on economic policy Sattar Safarov said that the bill included a draft law on amendments to the Tax Code. Mr. Safarov said any change to the Code adversely affects the development of the economy and therefore he is against it.

According to minister for economics Farhad Aliyev, the budget revenues from the State Customs Committee are estimated at AZM920 billion, or 12.2% over the 2001, while other revenues are planned to be AZM240 billion, or AZM1 billion more than 2001.

The debates will be continued at the next meeting.

High revenues

The draft 2002 budget depends on tax bodies for its 75.7%, customs for 19.3% and other revenues for 5%. The budget assignment of tax bodies is 1.1 times over the 2001 budget, customs bodies 0.4 times and other revenues 0.7 times.

The Ministry of Taxes is assigned to transfer AZM3620 billion, or 16.2% more than 2001, to the budget. The revenues of state-owned enterprises will expectedly rise 20.1% and private enterprises 10.6%.

Private sector up

The budget draft sets the share of private sector in industry at 52% to 48% last year, minister for economic development Farhad Aliyev said Friday. He was talking to a joint meeting of the parliamentary commissions considering the bill.

According to the minister, the bill estimates oil output volume at 15 million tons a year, or 3.2% over 2001, and gas production at 5.7 billion cubic meters.

AZM100bn more

According to the draft, the State Customs Committee is to transfer AZM920 billion, or AZM100 billion over last year's.

The draft, prepared by the Ministry of Finance, initially set the budget target for the Committee at AZM890 billion, but the plan was reconsidered by the President's office and reduced by AZM30 billion.

Lower oil revenues

The draft sets a barrel of oil at $19 following the consideration at the President's office. The previous version of the draft envisaged $22 per barrel, but the figure was reduced due to falling oil prices in the international markets.

Oil prices in world exchanges are fluctuating between $20 and $21 per barrel.

External debt

The budget draft will push ahead with the positive tendency of handling external state arrears over the past few years, finance minister Avaz Alakbarov said Saturday. In other words, the debt will be repaid by a borrower proper. As was informed earlier, the Ministry assigned its representatives to supervise loan borrowing entities, and the practice has paved the way for rapid repayment of arrears.

Currently, the state debt on loans spent under relevant agreements constitutes 22.5% of GDP, something that is regarded normal viewing the international practice and quite positive judging by the CIS figures, the minister said.

Metallurgy to double

The draft envisions to double the volume of ferrous and non-ferrous metallurgy production, which is designed to reach AZM500 billion, minister for economic development Farhad Aliyev told journalists.

According to him, this is going to happen in the wake of the increased production of steel pipes and aluminum. The yearly output of the former is believed to rise to 100,000 tons.

Embezzled funds recovered

The audits held by the Ministry of Finance control and revision department in conjunction with the Prosecutor's Office revealed appropriation of AZM30 billion from the state budget. Only AZM5 billion, or 16.6%, of this amount has been transferred back to the budget, chief of the Finance Ministry senior budget department Fazil Farajov told a joint meeting of four permanent parliamentary commissions Monday.

The documents pertaining to the embezzlement have been forwarded to the Prosecutor's Office and criminal proceedings initiated.

Education vote 21.1%

The draft state budget fixes education expenses at AZM1 trillion 82 billion, or 21.1% of the total budget volume. The figure is AZM71.1 billion over the 2001 budget projections.

63.5% of the educational expenses are earmarked for salaries and 18.4% for extra pays.

ACCOUNTING CHAMBER TO CONTROL OVER OIL FUND EXPENDITURE

A new draft law "On the accounting chamber" has been prepared for the discussion and adoption by the Milli Mejlis fall session, according to the chairman of the Accounting Chamber Namig Nasrullayev.

He said the new draft law would, in addition to exercising control over state budget expenses, keep track of the Oil Fund of the Accounting Chamber Namig Nasrullayev.

He said the new draft law would, in addition to exercising control over state budget expenses, keep track of the Oil Fund's expenses and the country's currency reserves. Though established last year, the chamber will start work since 2002.

IMF DELEGATION EXPECTED IN BAKU

An IMF delegation is expected to visit Baku Sunday, finance minister Avaz Alakbarov told journalists Saturday. According to him, the purpose of the visit is to take part in the preparation of the conception of reforms in the energy sector and to secure tough financial discipline.

The IMF specialists are also expected to become familiar with the pace of the structural reforms and give necessary recommendations to the Azerbaijan government.

AZERI-KAZAKH COMMISSION MEETING DUE IN MARCH

A meeting of the Azeri-Kazakh intergovernmental economic commission is due in March next year. According to a government source, the commission is expected to work in a new make-up.

Co-chairs of the commission are vice-premier, minister for energy and mineral resources of Kazakhstan, Vladimir Shkolnik and Azeri vice-premier Abbas Abbasov. The commission will outline further prospects of bilateral economic cooperation.

RUSSIAN EXTERNAL ECONOMIC BANK EXECUTIVES EXPECTED ON VISIT

A delegation led by chairman of the management board of the External Economic Bank of Russia, Andrey Kostin, is expected to visit Baku shortly on the invitation of the Azerbaijan government. A source from the Cabinet of Ministers said Friday that the Russian bankers are expected to meet with government officials, tour to the automobile plant in Ganja and hold meetings at the National and International Banks of Azerbaijan.

President Aliyev is expected to receive the delegates.

The parties will center on the funding of production of Russian-styled Kamaz trucks in Ganja and repayment of the frozen accounts of over 140 Azeri enterprises in the Bank.

ITALIAN TRADE COMMISSION's EXECUTIVE VISITS BAKU

The executive director of Italy's trade commission Antonio Maffoda, on the last day of his visit to Baku, held a meeting with leaders of the National Confederation of entrepreneurial organizations and businessmen, as the parties focused on Azeri-Italian business relations, technical cooperation, choice of priority economic areas, etc.

Earlier, Mr. Maffoda had meetings at the Ministry of Agriculture, Chamber of Commerce and Industry, etc.