Increase in pensions and salaries in Azerbaijan is for the long term
Azerbaijan, Baku, Nov 24 /Trend I.Khalilova/
About 800 million manat is provided in the state budget of Azerbaijan in order to increase pensions and salaries in 2012, Samir Sharifov the Minister of Finance said in Parliament during the discussion of the draft state budget for 2012 and the next three years on Thursday.
"It is a very large sum. We have some money to raise salaries and pensions, but we have to consider this issue over the long term. We could dramatically increase salaries and pensions now, but if we fail to sustain the process, it will lead to big problems in three to five years," Mr Sharifov said.
Today many European countries which don't have adequate financial support in the social sector experience a lot of problems. This is as a result of actions taken resulting in breaking promises. The solutions have seen a sharp reduction in payments.
"Social benefits with increasing issues are solved sequentially, which is the solution in Azerbaijan. One of these solutions was taken in 2011 in connection with the transition of pension provision for a two-tier approach and for certain categories of pensioners there are various methods calculating their pensions," he said.
According to Mr Sharifov this decision required more funds, but the financial commitments will be reflected in the adjustment of the state budget in subsequent years.
The official exchange rate on Nov 24 is 0.7865 AZN / 1 USD.