Opposition: State Budget for 2013 is corruption

Dangerous trends and socio-economic prospects of the country revealed a discussion today in the Public Chamber of the state budget of Azerbaijan for 2013.

Head of the Economic Research Center , Gubad Ibadoglu, presenting a preliminary analysis of the budget, noted the increasing dependence on oil. Draft budget shows that 73% of its revenues  comes from oil and gas, he said.

He also pointed out that the transfers from the Oil Fund grew even more and will make in the next year  11 billion 350 million manta or $ 14.5 billion.

"Oil  production  decreases, and the government is trying to make up the deficit through the Oil Fund, that is, at the expense of future generations,"  he said.

Poor participation of the non-oil sector in the state budget testifies to the critical impact of petrodollars. Non-oil portion of Azerbaijan's budget per capita is $715, in Georgia - $ 1010, and Armenia - $1000.

Large-scale corruption, the shadow economy  do not allow to  form the budget at the expense of the non-oil sector. Therefore, for  the  increase  of salaries and pensions only 240 million manat (10 AZN allowances per person per month)  were allocated, while the planned inflation rate of 5.7% " will eat" the money.

Another concern is the lack of information  on 65% of the costs in the budget, which creates the conditions for large-scale corruption. It is known that the budget revenues are expected to reach 19 billion 154 million manat and expenditures - 19 billion 810 million; budget deficit will make 656 million manat.

Draft budget shows that the  costs for internal forces increased by 36%,  for the Ministry of Emergency Situations by 22%. "It means that in a presidential election year the authorities are going to talk to people the language of force,"  said Ali Kerimli, the leader of the Popular Front Party.

Particular criticism is the residual funding  education and health,  for which less funds have been allocated than for  law enforcement. For example, law enforcement agencies will receive 1.82 billion manat (12% more than in 2012).

Spending on education will increase by 1.2%  and will total 1530 million AZN, social security will receive by 1.6%  more (1813 million), and  health care - 666 million (+0.5%).

Chairman of Musavat Party, Isa Gambar, called budget corrupt, citing examples of large-scale embezzlement of  public funds in infrastructure projects. "Every day of  this regime brings more losses; we can not allow  the budget  of 2013 year  be plundered by these people," he said.

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