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Purpose of Budget for 2008 is Improvement of Population’s Incomes – Interview with Chairman of Azerbaijani Parliamentary Commission on Social Policy

Business Materials 6 November 2007 19:39 (UTC +04:00)

Azerbaijan, Baku / Trend corr U. Ismayilova / Azerbaijani Government pays a special attention to improvement of the population's social status and reduction of poverty. A state program intended for 2007-2015 was developed for this purpose. It envisages arrangements in the field of agriculture, education, health infrastructure, banking sector, improvement of welfare of the refugees and internally displaced people.

Trend 's interview with the chairman of the Azerbaijani permanent parliamentary commission on social policy Hadi Rajabli:

Question: What tasks does the Government face to improve the social status of the population in 2008?

Answer: Targeted social aid is allotted to the population within the framework of the state program on reduction of poverty, which is a considerable step in improvement of the population's social status. In accordance with the draft budget for 2008, the Government intends to increase targeted social aid to the minimum of subsistence, which is planed to be raised to AZN 70 in 2008. Minimal wages and labour pensions are also expected to be increased to that sum.

Question: How do you assess the draft public budget for 2008?

Answer: If the public budget for 2008 and the public budgets of 90s years are compared, it will become evident that the budgets for 2007 and 2008 dramatically increased and became rather capacious for investments. The more budget's investment capacity is the more social it is.

Question: Which social elements were included in the public budget for 2008?

Answer: The public budget for 2008 differs through its social orientation. For instance, AZN 1.5mln was envisaged in the budget for 2008 for allocation of grants to NGOs. These grants enable NGOs to develop and to take part in the country's social life. For the first time expected surplus of consolidated budget was indicated and the forecasts for up to 2011 were publicized.

Question: Which social reforms are expected to take place after January 2008?

Answer: In addition, indexation of insured part of pensions given the inflation rate in the country will begin in January. The purpose of the public budget for 2008 is to support poor families, to increase wages by 30%, as well as to improve real social incomes of the population.

Question: Are assignments for social insurance are planed to be increased?

Answer: No. Next year, as it was in 2007, assignments will comprise 22+3. That means employer pays 22% and employee pays 3%, which go to the saving part of the pension.

Question: What is the situation with introduction of obligatory medical insurance in the country?

Answer: We have already developed the plan on introduction of obligatory medical insurance, and Siyazan region was selected as pilot one. So, in future medicine will be financed not only through the public budget, but also insurance.

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