State has funds enough to improve living standards of citizens

Baku/25.10.21/Turan: In January-September 2021, budget revenues of the State Oil Fund of Azerbaijan (SOFAZ) made AZN 10.444.5 million and budget expenditures AZN 7.328.2 million. It means a surplus of AZN 3 bln 116.3 mln in the budget of SOFAZ.

It is noted that the State Oil Fund received 7 billion 309.7 mln AZN.

According to the last year, the Fund finished the reporting year with a deficit of AZN 3.064, 5 mln.

According to the official information, there was also a surplus in the State Budget.

In January-September 2021 the surplus amounted to 159.7 mln AZN.

State budget revenues amounted to 17 bln. 871.6 mln. 711,9 mln AZN.

In this case, experts say that it is necessary to direct these funds to improve the social situation of the population from November in views of rising prices for utilities.

However, according to the Ministry of Finance, in the first 9 months of this year socially oriented expenditures amounted to 43,2% of actual state budget expenditures and were executed for 7 bln 655,2 mln manats that exceeds by 6,7% the expenditures of the same period last year.

Is it necessary to improve the social situation at the expense of the surplus formed in the budget of the State Oil Fund and the state budget?

Rufat Guliyev, a member of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, told the Turan agency that Azerigaz, Azerishig and Azersu utilities explain the increase in tariffs by the rising cost and an increase in the number of subscribers. "The cost is influenced by such factors as recoupment and profitability. Utility representatives say that when the number of subscribers increased, they were forced to invest more money in technical issues. Every time they raise the issue of price increases before the Tariff Council, he said that every year they received subsidies from the state budget, now they do not want subsidies, let the state use them in its social policy, and they will pay for their expenses at the expense of price increases."

The deputy pointed out that in this case, subsidies from the state budget could be aimed at improving the social security of low-income citizens. "Theoretically it is possible. On the other hand, how feasible will it be in practice? We are waiting for the government, the budget, and discussions in the Hazy. I think we will discuss this issue very seriously. If indeed the difference between the cost of utilities and the price of sale will not be covered by the state budget, it can be solved."

Economist Nemat Aliyev said that in Azerbaijan there are serious reasons to increase salaries, pensions and benefits in order to reduce the negative consequences of rising prices. "Let no one think that the Azerbaijani state has no money. We have $51 billion in the State Oil Fund of Azerbaijan. They can earn additional billions from managing those funds, but in many cases they don't do it publicly. Even in previous years, it was said that the State Oil Fund's income from managing these billions was only 0.5 to 0.8 percent. That figure is much higher. If they manage the funds transparently or don't hide them, that's where the big sources are."

In his opinion, most of the funds are in the part of the budget that is for corruption. "Too much of the resources is overstated spending by public companies. Spending is -0-

greatly exaggerated. By cutting items of expenditure, by ensuring transparency, very large financial resources can be obtained. All these resources are an additional source of money to finance social spending."

The expert noted that in January-August of this year the prices of oil and non-oil products, which Azerbaijan sells to foreign countries, increased by 42 percent. "The volume of exports during this period amounted to $12.7 bln. That is, we received 5.3 bln manats of profit from the rise in prices of exported products alone. In the 8-month period we got 2.4 bln manats of profit from the growth of goods imported from foreign countries in the domestic markets. In these two areas net profit of 7.7 bln manats was received. These funds are considered very large sums to finance social expenditures. Therefore, such statements as "we don't have enough money" seem ridiculous."