State budget - the face of political power in Azerbaijan

The state budget is the face of government (legislative, executive and judicial power, plus law enforcement and infrastructure - 5 in one) for countries like Azerbaijan.

According to economist Rovshan Agayev at the REAL Movement's presentation of the areas of the state budget for 2013, the main feature is the lack of expenditure control and pretentiousness of its revenues.

Thus, 35% of the expenditure side of the budget will be disbursed builders. Leadership does not accept construction standards as CIS West. Constantly talking about the need for a national standard, it does not implement them. Lack of control spending as 9.07 bn domestic investment (76.4% of them - money allocated specifically for the construction and mining), and the commissioning of a system triggers a "double looting." If we add more transparent foreign borrowing to build a state obligation, painting excluded from control of the funds will be bleak.

Budget deficit is a formal concept, as evidenced by its size (1.1% of GDP, or 656 million manat). For this article does not report either the Finance Ministry, the parliament, whose function is the formation of the basic economic law usurped the political leadership, in particular, the administration of President. This means that domestic borrowing through financial mechanisms are not relevant, and the following year, and the Stock Exchange (in the country, by the way, there is no commodity exchange) would be purely nominal.

In his opinion, the expected transfers from the State Oil Fund of $ 11.35 bn (2.35 billion more than in 2011, and 1 billion 445 million more than in 2012), or 59.3% projected revenue shows the suggested minimum commitment of the ministries and agencies responsible for the expenditure of public funds.

Humanitarian costs (health, education, science and public sector wages) are not comparable to investment costs, which is also negative for the drafters of the bill. Science is supposed to be allocated AZN 129.1 million (0.65% of the budget, or 53.8 times less than the investment inflows), education - 1 billion 530.37 million (7.7%), and health care - 666,276,400 manats (3.36%).

Speaking of state employees and their salaries, state employees of budget - are different. Total allocated for this purpose 2.77 billion manat. Thus, for example, educators (approximately 380,000 people) receive an average of 200 manat, the medical staff and employees of nursing homes (154,000 people) - 160 manat, which does not correspond to the average cost of the consumer basket. Almost 1.2 bn of the total salary per year is much less than the amount allocated to the legal system. Interior Ministry officials, not to mention the prosecutor's office and the judiciary, receive at least 400 manats of official salary plus seniority, position, etc. By the way, on the bill, the cost of enforcing the law are provided at the level of 1 billion 820 million manats.

According to Agaev, alarming is also the uncontrolled figure of 2 billion 881.82 million manat allocated for service areas not covered by the main grid (which is 43.86 million less than projected for this year.) -17D-

 

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