An enlarged session dedicated to the state of execution of state budget during six months of 2003 ands the coming tasks was held At the ministry of finance of the Republic of Azerbaijan.

Chairing at the session was minister Avaz Alakbarov, who noted that appointment of Ilham Aliyev to the post of Premier would yield much more success in the field of economy.

Noting the new appointment as a guarantee for the positive changes in the work of ministry of finance, successful continuation of the ongoing economic reforms, irreversibility of the integration of Azerbaijan to the world economy, Mr. Alakabarov assured Mr. Ilham Aliyev that staff of the ministry would not spare efforts to back all the activities conducted for progress of Azerbaijan.

Continuing his speech, the Minister especially underlined that as a result of the economic reforms, conducted in the Republic under the strategy defined by President of Azerbaijan Heydar Aliyev, in 2003, successfully was implementing process of forming finance policy of the country, preserved economic stability, conducted right budget-tax policy, grows investment flow in the economy, widened business links with the international financial organizations. In Jan-June 2003, Azerbaijan according to the growth of the Gross Domestic Product (GDP) surpassed many CIS countries. GDP volume increased in comparison with the first half of 2002 by 10,1 percent, or, 1,3 trillion manat and reached 15,4 trillion manat.

In six months of 2003, forecasting of the state budget revenues has been fulfilled by 105,9 percent that exceeds the same period of 2002 by 38,8 percent. In this period, expenses of state budget were realized by 95,4 percent and increased in comparison with the same period of previous year by 30,1 percent.

Noting that in the state budget expenses, preference was given to the sphere of social tendencies, Mr. Alakbarov stressed that for improvement of the welfare of population under the Decrees of president of the Country, were increased official salaries of the employees financed from the state budget. The Minister noted that in six months of 2003, official wages in this sphere increased by 21,4 percent and amounted 373,5 thousand manat, while the money incomes per capita increased by 11,2 percent and reached 1360,6 thousand manat. Deposits of the population in Banks in comparison with the previous year, have increased by 51,2 percent and totaled 941,8 billion manat.

From the beginning of year, in account of all the finance sources, for development of economic and social spheres were directed investments at amount 7,2 trillion manat.

Positive tendency, observed in the macro-economic indices in Jan-June 2003, continued in July as well. Economic indices allow speaking of the fact that the growth will develop.

It was also underlined that the work on the 2004 budget completed. Solution of the questions connected with the draft budget is successfully going on, the speakers emphasized. And the made alterations witness on the growth of transparency of budget.

The draft also reflects additional means, connected with reduction of the budget deficit, as well as reduction of tax, keeping of tax privileges in the agriculture, improvement of introduction of the excise, complete introduction of the Law ‘On state service’, on direction of the student scholarship, further state concern for small and medium entrepreneurship, and means earmarked for preparation of the 28th Summer Olympic and other issues.

Chief of the economic policy department of the President Office Mail Rahimov attended the session.