Raising tariffs affect the budget of all Azerbaijani families

Solutions Tariff Board to raise prices of petroleum products and other excise goods entail significant spending in the budgets of all Azerbaijani families - said today at a public hearing on the impact of the tariff increase on excise and some other goods founder of the Center for Economic Research, Ph.D. Gubad Ibadoglu.

According to him, in the Statute of the Tariff (Price ) Council of the Autonomous Republic (Article 1.3) provides for the implementation of the organization's activities in relation , in particular, with public organizations. According to Article 2.1.9 of the same document, the council is obliged to provide the media with information about the work of state regulation of prices, the need, purpose and possible outcome of regulation. However, until the decision to raise tariffs (3 December 2013), the members of this structure denied the probability of possible actions alleged "to prevent the hype."

Tariff Council draws conclusions not based on monitoring and in collaboration with the executive and legislative powers , and based on the recommendations of state monopolies - SOCAR, Azersu, Azerenergy, AZAL and others. It is their duty to the state is the most (2.4 billion manat) debt business structures in the state budget. As you can see, way out of the situation, the government sees no economic reform monsters, and to " get into the pocket" of the final consumer. The government's tactics unfounded - with the growth of budget revenues through new tariffs inevitable growth of budget expenditures on all sorts of social compensation that actually provoke a double-digit consumer inflation , as well as environmental problems, believes the economist.

Corruption is also an expected effect of the tariff increase. Today there is a problem with the official registration and reporting, both vehicles and motor fuel - in Azerbaijan, there are registered 1.2 million vehicles in the implementation of about 4,000 tons of gasoline and diesel fuel a year - it turns an unreal figure of annual consumption of each car - 3.2 liters. These figures are evidence of the level of the shadow economy in the production and consumption of petroleum products.

Tariff increase for excise goods will affect the income of both population and producers. The government has not yet announced an increase in utility prices, but this step is not far off - the electricity price will rise by 30 % due to higher gas prices for large industrial consumers, including power stations, gas for the category "population" will rise by 25%, water will rise by 35-40 %, and so on.

Holes in the household budgets in the absence of social programs will lead to another round of increase in pensions and benefits, which are not filled with real content.

Gubad Ibadoglu considers it necessary to expand public participation in ongoing processes, including debates, hearings involving print and electronic media. The government should also monitor and assess rates and provide decision-making, given the recommendations of non-governmental organizations and taking into account the priority of public interest. - 17D-