Expert Opinion on Execution of State Budget for 2014 Published

The NGO Assistance to Economic Initiatives (a member of the coalition National Budget Group) published an expert opinion (http://www.budget.az/upload/files/SEI_budget2014_icra_rey.pdf) on execution of the state budget for 2014. It summarizes the problems of transparency of revenue and expenditure of the state budget.

To ensure transparency, efficiency and accountability of the state budget execution it is proposed:

- Publishing the forecast and the actual structure of income and expenses for each region of the country;

- A complete list of executed public investment projects with an indication of the volume of funds spent;

- Full information on budgetary funds;

- The full list of costs for the Reserve Fund of the President and the Cabinet of Ministers;

- Information on income and expenditure of extra-budgetary funds.

In conclusion, it is noted that the state budget revenues in 2014 exceeded the forecast by 0.1% and amounted to 18.4 billion manats. At the same time, in comparison with 2013 the revenues decreased 1 095.7 million manats.

State budget expenditures in 2014 amounted to 18.7 billion AZN, 1,354 million manats less than the forecast. In addition, the state budget expenditures have decreased from the previous year by 2.3% or 434.5 million manats. The budget deficit amounted to 308 million manats.

The dependence of the budget on oil dropped by 4%: in 2013, 70% of the revenues of the state budget were provided by the petroleum sector. However, this decline is due to the reduction of transfers from the State Oil Fund. In 2014, the Fund provided 9,337 million manats of budget revenues - 2 billion manat less than in 2013.

Budget revenues from the private sector in 2014 decreased by 183.7 million manat and amounted to 5 007.3 million manat.

We note that, despite the fact that the government publishes the draft budget in print, public participation in drawing it up and discussing it is almost unnoticeable. -08D