Azerbaijan, Baku /corr. Trend I.Khalilova / The Minister of Economic Development of Azerbaijan, Heydar Babayev, said on 27 September that the Ministry submitted to the Cabinet of Ministers a complex program on anti-inflation measures for 2008.
The key reason for the growth of the index of the consumer prices may be the 35% increase in the budget expenditures and it increases the responsibility of the economic organizations of the government. They face the task of preventing the impact of an increase in State expenditures.
"The inflation should be at the level of management. The index of the consumer prices for the 2008 macroeconomic forecasts has been established at the level of 12%. We consider that the movement of prices will continue in this way and this rate will be at a manageable level," the Minister said.
Babayev considers that this limit of the inflation may be decreased due to complex measures outlined in the program. The measures to prevent price increases have been specified in the regulations made by State organizations. The tools may vary from government securities to measures taken by the National Bank.
"If all of these anti-inflation measures are implemented, it is possible to speak of a transfer to the manageable level of inflation," the Minister said.
The anti-inflation program envisages proposals to adopt new regulations of the State organizations and control of their expenditures, severe management of debts, activating such tools as government securities, and banknotes issued by the National Bank.
"If these measures are taken, supported by the IMF, it will be possible to significantly decrease inflation (10%)," Babayev said.