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Azerbaijan increases health research expenditures

Finance Materials 22 May 2020 15:14 (UTC +04:00)

BAKU, Azerbaijan, May 22

By Eldar Janashvili – Trend:

The health care expenditures in Azerbaijan increased by 4.5 million manat that’s $2.6 million (23 percent) on an annualized basis, amounting to 873.6 million manat ($513.9 million) in 2019, which accounted for 3.6 percent of all expenses, Trend reports referring to the Azerbaijani Finance Ministry’s report on budget execution in 2019.

Some 41.7 percent (363.9 million manat that’s $214.05 million) accounted for the maintenance of hospitals in the structure of health care expenses (without capital investments) in accordance with the functional classification in 2019, which is 32.5 million manat that’s $19.1 million (9.8 percent) more than in 2018.

Some 115.2 million manat ($67.8 million) accounted for the maintenance of clinics and outpatient departments in 2019, which is 12.1 million manat that’s $7.1 million (11.7 percent) more than a year earlier. Some 1.6 percent (14.5 million manat that’s $8.5 million) accounted for the expenses on applied research and other health services, which increased by 3.6 million manat that’s $2.1 million (33 percent).

The remaining 43.5 percent of total health spending accounted for other services in this sector, amounting to 380 million manat ($223.5 million), an increase of 115.7 million manat that’s $68.05 million (43.8 percent).

Labor costs accounted for 388.8 million manat ($228.7 million) in the structure of health care expenditures in 2019, which is 43.6 million manat ($25.6 million) - 12.6 percent more than in 2018, 307.8 million manat ($181.05 million) - for the purchase of goods and the attraction of work and services in 2019, which is 14.8 million manat ($8.7 million) - 5.1 percent more than in 2018.

Some 3.1 million manat ($1.8 million) accounted for scholarships and social benefits, 113.4 million manat ($66.7 million) - subsidies and current transfers in 2019, which is 85.6 million manat that’s $50.3 million (4.1 times) more than in 2018.

Other expenses, such as overhaul and reconstruction of facilities, rental fees and bank expenses accounted for 36.3 million manat ($21.3 million) in 2019, twice as much as a year earlier (17.8 million manat that’s $10.5 million).

Some 4.2 million manat ($2.5 million) was allocated for the acquisition of non-financial assets in 2019, which is 1.7 million manat that’s $1 million (7.6 percent) more than in 2018.

Some 204.7 million manat ($120.4 million) was allocated for the provision of outpatients and hospital patients with medicines in 2019, which is 11.9 million manat that’s $7 million (6.2 percent) more on an annualized basis than in 2018.

Some 89.6 million manat ($52.7 million) were allocated from the state budget-2019 to the State Agency on Mandatory Health Insurance to buy vehicles and medical equipment in connection with the application of compulsory medical insurance to strengthen the material and technical base of medical institutions subordinate to the Medical Territorial Unit Management Unit (TABIB).

In general, 6.6 billion manat ($3.9 billion) was allocated for expenses in the field of science, healthcare, social protection and social security, culture, art, information, physical education and other categories (taking into account the funds allocated for the state capital investments) in 2019, which is 394.4 million manat ($232 million) or 6.4 percent more than in 2018. These expenses accounted for 26.9 percent of the state budget expenditures.

(1 USD = 1.7 AZN on May 22)

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