Amendments to 2008 Budget of State Social Fund of Azerbaijan

Business Materials 3 May 2008 12:34 (UTC +04:00)

Azerbaijan, Baku, 3 May /corr Trend I.Khalilova / The Parliament of Azerbaijan approved amendments to the 2008 budget of the State Social Protection Fund of Azerbaijan. According to the amendments, the income and outcome of the Fund increased by AZN 136.867mln and totaled AZN 1 405.515mln in each regard.

The Chairman of the Fund, Salim Muslimov, said that 74.5% of the additional incomes will be ensured through increase of payments on social insurance, 24.5% - increase of transfers from the Public budget. The incomes from the obligatory social insurance in the approved budget totaled AZN 1019.015mln, an increase of 11.1% and transfers from the Public budget - AZN 385mln, an increase of 10%.

Fund's additional expenditure totaling AZN 131.1mln will be directed towards payment of pensions and allowances and AZN 5.767mln - maintenance of the Fund, expenses on banking pension payment service to and other goals.

According to the amendments, in 2008 the Fund will direct AZN 1348.513mln towards payment of the pensions. The changes to the budget of the State Fund are linked with the necessity to increase pensions within State measures on social protection of poor layers of population.

"Annually the State Fund receives transfers from the Public budget to make these expenses close to the cost of living. Some 96% of Fund's expenses is envisaged for payment of pensions and allowances, an increase of 31 as compared to previous years," Muslimov said.

According to him, the statistics of the recent years also testify increase of births in the Country. Due to it, the expenses in this regard will also be increase in the coming years.

According to accounts of the Ministry of Economic Development, by the end of the year, the average monthly salary in the Country will increase up to AZN 278 from AZN 230 as a result of the first quarter and it will expand the transfers from obligatory social insurance. Due to it, while making amendments to the budget, accounts were held in two directions - growth of salaries in budgetary organizations and social insurance payments from non-budgetary organizations.

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