Page 123 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

animal, purchase of seeds and other agriculture related expenses, license,

patents, rights for usage for long-term usage of land areas and natural
reserves, acquisition of trademarks, organizational expenditures and etc.

These expenses cover the capital investments. However, part of such kind
of expenses can be made both in respect of existing and new objects.

Therefore some part of these expenses can be not treated as investments

on macroeconomic level.
Expenses incurred in respect of acquisition of securities are treated

as investment on microeconomic level. However on macroeconomic level
such expenditures are not considered as part of investment category. For

example, funds directed to purchase of shares are directed further to

financing of some particular investment. From this point of view
estimation of volume of public expenditures has several difficulties. Thus

the state budget finances the direct investments done by the authorities and
transfers the funds for investments of non-financial institutions. At the

same time public agencies can finance their investment activities by the
means of debt financing. In this condition classification as public

investment of some particular investment made directly through the state

budget or implemented by the government authorities is at some extend
hampering. On other hand most of investments are realized by the

government organizations. At the same time state uses government
guaranties in financing of these investments and attraction of debt

resources. At the same the companies under the public control are also act
based on public decisions. All these points also hampered the estimation

the volume of the government investments. These difficulties also rise

during consideration of the Public Investment Program.

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