"A decent budget is an indicator of social well-being and a human rights issue"

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Question: What is in the draft state budget this time, and what is not? How does the current budget differ from the previous one?

Answer: State budget revenues for next year are forecasted at the level of 26.8 billion manats, this is by 5.5% more than last year. State budget expenditures are projected at the level of 29.9 billion manats, which means an increase of another 4.7% compared to the approved indicator of 2021. The state budget deficit is projected at 3.5% of GDP. This briefly demonstrates the fiscal situation with the budget.

First of all, let us touch on the indicators that can be considered the advantages of the state budget. This is the largest budget compared to previous years' budgets. This is even the largest state budget in the years of independence. State budget expenditures in 2020-2 make up to 1/3 of GDP.

The most alarming fiscal link in the state budget for next year is still the relationship of the State Oil Fund with the state budget. So, net of transfers from the State Oil Fund, state budget revenues are envisaged at the level of 14 106.0 million manats, which is 6.6% more than the approved figure for 2021. More specifically, the state budget revenues will be transfers from the state oil fund in the amount of AZN 12.7 billion, or 47.4%, AZN 8.8 billion or 32.9% of receipts from the State Tax Service, AZN 4.2 billion, or 15.9%, and through the State Customs Committee of the Azerbaijan Republic.

Question: The main question that interests people is the increase in salaries, benefits and pensions. Are such increases envisaged in the state budget this time?

Answer: Yes, the dynamics of social spending can be felt in the state budget for next year. Rather, the approved structure of socially oriented state budget expenditures for the next year is projected at 13.8 billion manats. This is 13.5% more than in the state budget last year. The increase in spending on education from the state budget for the next year is also included in the areas of spending that have a special weight. In 2022, 3.9 billion manats will be allocated from the budget for education. This represents an increase of 18.5% over last year. But, in my opinion, the main issue is not in increasing the budget, but in the correct determination of its priorities.

Let's say our education budget is growing. But the main question on which our attention should be focused is what percentage of these funds will be directed to the wages fund for workers in the education sector. If the education budget is expanded to a greater extent to support more infrastructure, such an increase will prevent education workers from achieving a decent standard of living.

Question: How much money is envisaged for reconstruction work in Karabakh?

Answer: In general, the state budget for next year will allocate 8 billion manats or 27% of expenses for repair and construction work and infrastructure renewal to finance capital expenditures. Approximately out of every 4 manats, 1 manat will be spent for these purposes.

However, in a specific case, 2.2 billion manats will be allocated from the state budget for 2022 for the reconstruction and rehabilitation of cities and villages, as well as for other purposes to ensure a large return to the liberated territories.

Question: Every year during debates, MPs usually refer to the budget as a "decent budget." And this year, the opinion is increasingly heard that this is the largest budget in the entire history of independence. Can the current budget be called decent, and is it really the largest since independence?

Answer: This is mainly due to the increase in social spending. The deputies who talk about this link the concept of "dignity" with the multiplicity of social expenditures from the budget. However, they do not take into account that the concept of dignity is not only a concept related to social well-being. It is also the concept of human rights and freedoms. In Azerbaijan, the situation with human rights and freedoms, democracy in sight. On the other hand, a decent budget must also take into account the concept of a decent salary. In Azerbaijan, decent wages in very rare cases have become possible without obtaining illegal income.

Question: What should be in the budget, but is not included?

Answer: The funds that are transferred from the State Oil Fund to the state budget should have decreased, but, on the contrary, they increased. After such an increase in oil revenues of the state budget, instead of increasing, the funds coming from the non-oil sector are reduced.

As we know, next year the share of health care expenditures in the structure of state budget expenditures will be 6.0%, and the share in GDP - 2.1%. Of the funds allocated for health care costs, 1.1 billion manats, or 62.9%, will be directed to compulsory health insurance. In fact, we should have switched to compulsory health insurance a long time ago. We have missed this chance for years. For this reason, the poverty rate is on the rise as families finance health care costs at their own expense. Because of all this, we were unable to increase our lifespan.

Kamran Mahmudov