Subsidy dependence of regions may be reduced to a minimum
Economy04 February 2016, 17:56 845
"Regions must get rid of subsidy dependence by using their full potential.” Azerbaijani President`s Aide for Public and Political Affairs Ali Hasanov made remarks at a meeting with Guba residents. He stressed that separation of regions from state subsidies is a very important issue. The government should fund only essential issues: " The government funds big regions, as Guba with fertile soil and almost 90 percent of Azerbaijani regions. This process can not carry on for a long time. The government should keep funding much more necessary issues. Using their potentials completely, regions must get rid of state subsisidies. If Guba uses its 50% prospects, no one will stay unemployed in the region. Guba can cope not only its demand by growth of gardening, as well as, the country’s demand. There are all opportunities for this and it should be assessed.
Touching upon an importance of establishment of regional associations, Ali Hasanov told that local authorities must support initiatives of people.
Recall that, Baku, Sumgayit, Shirvan and Mingachevir cities, as well as Absheron and Imishli regions have had budgets without shortage up to now. Naftalan will not get state subsidy. Thus, the city will provide its expences by own incomes. Profit of Naftalan city for the year of 2016 predicted to be AZN 3mln 762 thousand and expenses will be AZN 3,5 mln. In 2016, the most amount of state subsidy will be allocated for Aghdam (AZN 3,5 mln), Shamkir (AZN 28,3mln), Jalilabad (AZN 24,7 mln). According to predictions, the budget profit of Baku estimated to be be about AZN 6,15 bln, expenses will be AZN 5,716 mlrd.
Azerbaijani MP, member of Economic Policy, Industry and Entrepreneurship Committee of the Milli Mejlis, Vahid Ahmedov told "Kaspi” that during budget discussions this issue also was touched on: "President of Azerbaijan has given special instructions over this. Recently, a considerable amount of fund allocated for infrastructure projects in the regions. Issues about water, gas, electricity, road lines have been already solved. Therefore, we consider that regions have all necessary resources to fund themselves. Lately, some Azerbaijani cities as Baku, Sumgayit, Neftchala, Mingachevir have been funding themselves. Its time for other cities also to fund themselves. The main principle of this step is to stop funding of regions by the state budget.
According to MP, it needs to analyse economic potential of regions: " In 2016, about AZN 780 mln allocated for regions. Economic growth and potential increase of regions depends on local authorities. After opening of new jobs in the regions, of course, opportunity of regions to sustain themselves will grow. After holding analyses, we will know which region can fund itself or has economic potential for it.
Chairman of "Economiks” Association for International Economic Studies (AIES), doctor of economic sciences Fikrat Yusifov spoke to "Kaspi” about significance of the issue: " The main issue stressed by the head of state was overcoming the subsidy dependence of regions. This is a very important issue. Solution of regional problems by the state budget, has made local authorities unconcerned for economic growth of regions. Stressing real ability of regions for funding themselves without state assistance, F.Yusifov noted importance of establishment of production fields: " Majority of Azerbaijani regions have opportunity to work without state subsidies. Simply, within the framework of special programs, production fields based on local row material, human resources need to be established in the regions.
Production fields that to be established in form of small and medium-sized enterprises (SMEs) will bring positive results not only for regions, as well as, for the country. All these mentioned steps will provide more profit for the state budget and increase of export. Consequently, dependence of regions on state subsidy will be reduced to a minimum or completely suspended.