Expected increase in utility tariffs and energy prices

Government plans to increase the budget expenditure on payment of budget organizations boards on utilities , fuels and lubricants , paves the way for thinking about a possible increase in tariffs for goods and services with the state monopoly in 2014. So suggests economist expert Rovshan Agayev.

In 2014, for payment of utility and communication costs funded organizations will be allocated 641 million manat, which is 84.8 % more than this year (346.8 million manat). The expert believes that it is in any case can not be attributed to an increase in the consumption of services by budget organizations. Decline in oil revenues the government intends to compensate for the expense of inflation, he said. Suffice it to say that the proceeds of the VAT in 2014 , the government estimates at more than 300 million manats.

For the purchase of state-financed organizations lubricants government plans to allocate 88.8 million manat, which is 39.5 % more than this year. Compared with the previous year 2012, these costs will increase by 55.1 %. Cost of electricity consumption will grow by 25.5 %, natural gas - 18.9%, water - 26.7%, thermal energy - 20.3%, sewerage services - 67 %, phone calls and e-mail and Internet services - 13-32 %.

Rovshan Agayev said the analysis of these figures gives reason to anticipate high core inflation.

According to government estimates, in 2013 the inflation rate in Azerbaijan is to be 3.3 % and in 2014 - 3.5%.

State budget revenues (AZN 18.384 bn) for 2014 predict a cut of 4% and the costs (in excess of 20 billion manat) will increase by 5.3%. - 08B-