Milli Majlis Approves 2024 Budget for Social Funds, Marking Fiscal Shift

 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.