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In a decisive move during its latest plenary session, the Parliament of Azerbaijan greenlit the budgets for the State Social Protection Fund (SSPF) and the Unemployment Insurance Fund (ISF) under the Ministry of Labor and Social Protection of the Population for the upcoming year, 2024.
The approved budget outlines a noteworthy increase in both revenues and expenditures for the SSPF in 2024, amounting to a 10.4% surge, reaching 6,919.9 million Manats. A significant portion, 5,288.1 million Manats, equivalent to 76.4% of the fund's revenues, will be derived from mandatory state social insurance contributions. This reflects a 5.7% uptick from the previously endorsed forecast for 2023.
Comparatively, 1,392 million Manats, a decrease of 5.2%, will be allocated from the state budget for the upcoming year. Additional financial streams include 227 million Manats from the balance and 12.7 million Manats, representing a 0.8% increase in other revenues. This distribution implies a notable reduction in the SSPF's reliance on the budget, decreasing by 3.3 percentage points to 20.1% in 2024 compared to the preceding year.
Meanwhile, the ISF is set to experience a 9.3% boost in both revenues and expenditures, reaching 238 million Manats in 2024. The lion's share, amounting to 180 million Manats or 75.6% of the fund's revenues, will be sourced from unemployment insurance premiums. This marks a decrease of 2.3% from the projected figures for 2023.
Of note, 57.9 million Manats, a reduction of 13.7%, from the previous year's unused funds, will contribute to the revenue for the coming year. An additional 0.1 million Manats, maintaining the status quo, will be generated through other revenues.
This budgetary approval signifies a strategic fiscal shift, underlining the government's commitment to sustainable financial practices and reduced dependence on the state budget for social funds in the year ahead. The move is expected to have ripple effects on the nation's social welfare landscape, ensuring continued support for its citizens in various capacities.
Finance
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In January-October 2024, receipts to the state budget of Azerbaijan totalled AZN 31,542.5 million, and deductions from the budget - AZN 28,108.2 million. This is reported by the State Statistics Committee.
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Next year the budgets of the State Social Protection Fund (SSPF) and Unemployment Insurance Fund (UIF) under the Ministry of Labour and Social Protection will be about 10% higher than this year. This is stated in the relevant draft laws.
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In 2025, the need criterion and subsistence minimum in Azerbaijan should be AZN 285. This is stated in the conclusion of the Accounting Chamber on the Draft Law ‘On State Budget for 2025’.
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NBCO ‘International’ held an auction on placement of interest-bearing, unsecured undocumented registered bonds with ISIN code Az2017021026 / Az2019021024 / Az2016021027 in the amount of AZN 750, 000 with a 24-month circulation term at the Baku Stock Exchange (BSE). this is reported by the BSE.
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