The country is preparing to tighten belt

On October 13, the Parliament started discussion of the draft state budget for 2016, as well as a number of other economic instruments.The head of the committee on economic policy Ziyad Samadzade said that the global economic crisis has not bypassed and Azerbaijan. According to him, it is necessary to use a "favorable demographic situation" in order to create jobs. Closing of 30 thousand jobs is a serious problem, he said and added that the tax legislation will be amended, which will support the business.

In addition, there will be changes in the law "On Bankruptcy", "On Investment Funds", "On Banks", "On insurance". Amendments will be made in all acts, relating to simplify the procedure of bankruptcy and the sale of assets not later than 30 days. Finance Minister Samir Sharifov said that in order to reduce the external negatives taken on the economy "budgetary and fiscal measures." According to him, the budget revenues for 2016 are provided in the amount of 14.566 billion manats, which is 4,872,000,000 manats (25b1%) less than in 2015. 46.5% of the revenues of the state budget in 2016 - 6.773 billion manats fall on the non-oil sector. Forecasts of revenues from taxes are expected in the amount of 6.602 billion manats, which is less than the current year 510 million manat (7.2%.)

Through the customs revenues in 2016, the year will fall by 10.9% and amount to 1, 590 billion manats, which is at the level of the current year. Minister of Economic Development Shahin Mustafayev said that the construction sector in 2016 will be reduced by 4.6%. He promised a reduction of checks and the fight against monopolies, the enforcement of social programs and an increase in average salary to 475.5 manat.

The volume of investments in 2016 according to him will be 18.8 billion. Manat, of which 10.8 billion. Will go to the non-oil sector. The head of the Central Bank Elman Rustamov said that the problems in the economies of the partner countries' accelerated devaluation "of the currency and reduces the competitiveness of local producers.

"Last year, 15 billion foreign exchange reserves have been received from the domestic market. Now, however, the level of dollarization in the country back 10 years ago. Currently, the Central Bank's foreign exchange reserves amount to 7 billion," he said.

He further reported on the preparations for the transition to the principle of "operational rate of exchange." Did not explain what that means in practice, Rustamov said that the rate of manat is dependent on oil, and the price of oil is formed in Azerbaijan.

He further acknowledged the difficult situation with the banks, which in his opinion, the ability to secure the payment in the most pessimistic of the situation, reduce interest rates, extend the terms of payments on loans.

The measures of the Central Bank "sanitary measures" lead to the fact that funds for mortgages will increase, interest rates go down, the timing of payments on loans extended. Total lending in the country amount to 7.5 billion manat, of which 5 billion are business loans.

For eight months the average monthly inflation rate was 3.8%, much is less than in the partner countries, optimistically said the chief banker of the country. -03D-