Experts Prepared Proposals on Risk Management Caused by the fall in oil prices

The participants in the 22 January expert discussion considered possible effects of lower oil prices in the world market and the economic crisis in Russia on Azerbaijan and prepared proposals on risk management and how to eliminate risks.

According to the resolution spread by Popular Democracy and Welfare Movement today, given the role of oil revenues in the national economy, it is suggested that the Government develop public financial plans (state budget, budgets of the Oil Fund and the Social Fund) for three scenarios (bad, good and average). For this reason, government revenues are subject to change and optimization.

To raise revenues from non-oil sector, tax and customs discipline should be strengthened.

A special focus should be to develop an action plan for the legalization of the shadow economy, the fight against corruption and monopolization of the economy, increase transparency and accountability on the spending of public funds. To achieve these objectives requires the adoption of the Code of Competition and the law "On financial control", empowerment and self-reliance of the Accounting Chamber and Antimonopoly Service.

In parallel, the correction must be made in public spending, structural reforms carried out in the public administration, to ensure the independence of the judiciary.

Among the proposals is also speeding up the process of entering Azerbaijan to the World Trade Organization. ----08D