AZERBAIJAN PARLIAMENT PASSES 2007 BUDGET

Baku Today, Azerbaijan
AP
Nov 29 2006

Azerbaijan’s parliament passed a 2007 budget Tuesday that increases
projected income and spending by some 40 percent over last year,
relying largely on oil for revenues.

The budget foresees revenue of 5.3 billion denominated manats (US$6.1
billion; euro4.6 billion) and outlays of 5.7 billion denominated manats
(US$6.5 billion; euro4.9 billion).

The Caspian Sea nation’s oil industry should account for 56 percent
of revenues, according to the budget, which is based on the assumption
of a relatively low US$50 per barrel price for oil on world markets.

Defense and security spending in the ex-Soviet republic are set
at 906 million manats ($1 billion; euro760 million), up 27 percent
from this year. Azerbaijan’s dispute with neighboring Armenia over
the territory of Nagorno-Karabakh keeps fears of a major new armed
conflict simmering 12 years after a cease-fire ended a six-year war.