In 2014, the budget of the Nakhchivan Autonomous Republic with an official population of 435,000 people, will receive from the state budget a subsidy in the amount of 297 700 000 manat. That's 63.1 million manat more than the expenditure part of the budget of the city of Baku, where the number of registered population is 2.15 million people.
According to the Ministry of Finance, in the following year the grant of autonomy will be increased by 14 million manat, or 4.9%. In general, the size of its budget will amount to 366.7 million manat, of which only 18.8% (69 mln. manat) will be provided through internal resources.
It should be noted that the government of the autonomy gets a lot of funds from the Reserve Fund of the President of AR, as provided for in the state budget of the country. In addition, it highlights huge public investment. Only in 2008-2013, investment in various projects in the NAR from the state budget amounted to 660 million manat.
Analysis of macroeconomic data Nakhchivan shows that this area is informally free of taxation. For example, in the NAR, with a gross domestic product of about 3 billion AZN and industrial products of 862.8 million AZN (over $ 1 billion), a year’s tax profit is 1.5 million manat. This means that the business entities of the autonomy, where the demand for industrial and agricultural goods is met almost from local sources, do not pay taxes. An exception is the value-added tax, the amount of which does not exceed 40 million manat (including customs VAT). And this is despite the fact that only capital investment in the economy of the NAR exceeds 1 billion manat (all data for 2013).
It should be noted that all the economic and financial levers in Nakhchivan are concentrated in the hands of the Chairman of the Supreme Assembly of Nakhchivan Vasif Talibov, who is a relative of President Ilham Aliyev. His family owns several holding companies that virtually control the financial flows in the autonomy and expand business abroad. --08B--
Economics
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