Page 103 - Azerbaijan State University of Economics

DIRECTIONS OF IMPROVEMENT OF REGIONAL POLICY
OF STATE IN MODERN ENVIRONMENT

accelerates the migration process. Social problems, increase in foreign

migration, unemployment, low standard of life hamper the development of
regions with high capacity, at the same time regions with stable social

conditions gain additional opportunities.
The financial status of the regions can be estimated in following

directions:

• Portion of donations made from the state budget to the local
budget of the region; the amount of deficit in local budget, tax and other

inputs made to the local regional budget and budget versus actual
comparison;

• Comparison of salaries of staff employed in local budget

organizations with other expenses, current material expenses and capital
investment into the social realms;

• Volume and structure of accounts receivable and account payable

within industrial, agricultural, transportation, telecommunication and
construction entities.

The first group reflects the budgetary dynamics of the local
budget; the second group reflects the donations and ejections made to the

local budget and its dependence on such investments.
Based on determinants mentioned above we can identify

development capacity of each particular region. Therefore regions can be

classified in following three groups:
1. Regions with high development capacity. These regions have

necessary opportunities for their further development.

2. Neutral, or regions experiencing transitional period. These
regions are in position between crises and prosperity. In these regions

high standards of life are combined with high migration and low level of

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