Despite the point that the first events of 2016 saw increasing prices for oil which have been down by two-thirds since mid-2014, in order to create budget revenues depending upon temporary price jumps would be a wrong step.?To outweigh the actual difficult economy, the Azerbaijani government has prepared an idea of measures, Ogtay Asadov, the Chairman from the Parliament, says.
“The plan will likely be publisised soon,” he stated in the last meeting from the autumn session without revealing any details.
Commenting over the issues covered by anti-crisis plan, Vahid Ahmadov, affiliated with the Parliament, told Azernews that the government should pay significant focus to the growth of the non-oil sector of your economy as revenues of the country from the sale of oil has sharply decreased.
He believes that first off, government entities should find ways of the problems around the expansion of the non-oil sector, overcoming in the problems related to customs and tax systems, as well as the mitigation of licensing issues.
The MP also expressed confidence which the government’s anti-crisis plan will boost the welfare of the population.
“Generally, 2015 had been a difficult year for Azerbaijan along with the entire world in relation to economy. However the Azerbaijani government could fulfill its obligations, america faced difficulty with oil revenues as a result of falling oil prices. The CBA was required to devaluate the national currency – the first time in February by around 34 percent, have the option to second time – in December by 48 percent. Thus, the manat saw 82 percent devaluation a year ago. That decreased solvency, while prices increased,” he said.
Ahmadov also noted that the Parliament has proposed the us government to pay off about 10,000 manats of loans of people within the previous – 1 USD/1.05 AZN exchange rate, to supply deposit insurance and increase maximum sum of insured deposits from 30,000 manats to 500,000 manats, or even to put a moratorium for several years. Another offer would be to join small banks to larger banks with improved capital turnover, liquidity and credit portfolio which could reduce interest rates.
“All these problems must be resolved in a near future,” he explained offering to improve focus on the growth of the non-oil sector.
“It is important to reduce imports regardless the dwelling of import, to boost care about the creation of sectors involved in production of export-oriented products. The us govenment should pay special focus on the growth of such sectors as agriculture, industry, tourism and information technologies,” he concluded.
Before announcing the anti-crisis plans in details, the government takes measures to enhance the welfare of the population also to prevent impact of crisis to your national economy.
In particular, by the end of January 2016 the Secretary of state for Labor and Social Protection of Population will submit proposals on the government to raise the number of social aid judging by the fresh prices in the consumer market.
Minister at work and Social Protection of Population Salim Muslimov said for a press conference on January 6 that aids are financed in the state budget, and that will be taken into account while adjusting the budget forecasts.
In this regard, it is first recommended to complete the monitoring of prices about the markets.
“Every week, namely on Tuesdays and Fridays, our monitoring groups study the market prices in six instances of the united states. It is about modifications in food prices, which have been part of the food basket,” he noted.
“We regularly receive info on modifications in prices during the markets of them cities and currently, were defining about the extent does the total cost with the food basket changed. We will submit information regarding this and our proposals regarding the recent alteration of the exchange rate in the manat, and other factors around the expense of the meal basket to the government,” the minister stated.
One of the biggest steps that would be used to prevent the end results of crisis into the economy and dating of the united states should be to avoid job cuts.
In this regard the country’s employment agencies are studying the way the number of people seeking unemployment aids changed. “More than likely, the final results may become clear by the end of the month,” Muslimov said.
