Share of pensions in GDP hit 5.3 percent: Social Fund Head
Azerbaijan, Baku, Jan. 21 / Trend U.Ismayilova
In 2009, the
Azerbaijani State Social Protection Fund's revenues hit 1.6 billion manat which is higher by 14.7 percent or 205 million manat than the index in 2008, SSPF Chairman Salim Muslimov said in a meeting of the Cabinet of Ministers dedicated to the socio-economic development in 2009, which was presided over by Azerbaijani President Ilham Aliyev, the AzerTaj State news Agency reported
"Revenues from payments on social obligatory insurance increased by 8.3 percent to 1.37 billion manat in this period, of which 56 percent fall on share of non-budget organizations," Muslimov said.
According to Muslimov, individuals and land owners involved in private business paid social insurance fees in 2009. Landowner incomes increased by 23 percent and individuals by 25 percent as a result.
Salimov said the remainder from the 2008 public budget and 40 million manat allocated out of the public budget were directed at financing pensions in the country. Financing pensions payments was complete Dec. 29
In 2009, the SSPF expenses hit 1.675 billion manat, including 1.618 billion allocated for payments to population. It was higher by 20.8 percent or 278 million manat compared to the index in 2008. Pension payments hit 94 percent of all expenses.
In 2009, the SSPF allocated to population 46.4 million manat in grant, or by 24.6 percent more than the index in 2008
The SSPF's expenses grew amid the inflation ratio at 1.5 percent in the country, leading to increase of revenues of the population. Although in 2008 special weight of the SSPF payment in money revenues of the population made up 6.7 percent, in 2009 figure increased by 7.2 percent.
"The growth of pension payments exceed the overall growth of incomes of the population by 9.1 points, which testifies for the special support to poor population by the government," Muslimov said
According to Muslimov, the key aspect was the increase of special weight of insurance part of pension in pension expenses, which increased by 28.7 percent in 2009 compared to 20.8 percent in 2006 and is expected its growth to 30.3 percent in 2010
As of 2009, total amount of labor pensioners increased by 27,000 people to 1.302 million. Fifty-nine percent pf them were pensioners retired for age, 35 percent for disability, and six percent due to loss of bread-winner. In accordance with decree on indexation of insurance part of pension, 60 percent or 765,000 pensioners were provided with indexation in the amount of 20.8 percent
According to Muslimov, in late 2009, average pension rate hit 100.4 percent. Share of payments in the GDP hit 5.3 percent in 2009 which is the highest rate during the period of independence of Azerbaijan. This means overdrawing the internationally recognized five percent ceiling.
According to Muslimov, in 2009 the number of persons registered on the individual registration system increased by 154,000 to 1.64 million during joint activities with Azerbaijani Taxes Ministry
In 2009, automated pensions payment system among the villagers was provided by 94 percent. So far, 97.3 percent of pensioners receive their pensions through the plastic cards. Some 465 ATMs were installed in the country, including 85 installed in the villages
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