Child allowances set to be secured in the budget-2020

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- Gubad bey, from time to time an issue of child benefits is raised in Azerbaijan. However, even despite heated public debates, the issue remains unsolved. Some government officials maintain that social benefits are granted to families with low incomes in the country. So there is no need in granting child allowances. They explain their view as being due to the fact that the government needs not helping children from well-to-do families. It"d be correct to give this money to low income families for maintaining their children. What"s your opinion on the matter?

- It should be borne in mind that child allowance payments was stopped in 2006, and since that time the issue has repeatedly been discussed; however, the authorities have not taken a positive stand on the issue. In my view, it ought to take care of children who suffer from malnutrition, lack of quality education, effective medical examination and treatment. The basic cause is that families have no material benefits enough to meet needs of their children.

Of interest are two counter pleas for non-payment of child allowances in Azerbaijan. One group opines that there is a growth of population in the country; hence there is no need in paying child allowances and encouraging a growth of population. Another group believes that families accept social benefits, including targeted programs of social aid. And these families are participants of social programs and, hence, feel no need in child allowances.

As for the first group, I"d like to say that despite the population growth in Azerbaijan, the number of children aged 0-14 reduced. For example, in 2003 the number of children aged 0-14 made up about 2,5 million; today a figure stands at slightly above 2,2 million. At least, there is a reduction of children aged 0-14 from 2000. It is also related to the fact that large family traditions have practically disappeared. As a whole, families with 4 and more children make up 9, 7% of total number of children.

At present, most families have 2 children, as a whole, 40% of families in Azerbaijan have 2 children. Note that 30% of families have 1 child; 20% - 3 children. It is obvious that large families are not widely spread in Azerbaijan. From this point of view, arguments of the first group opposing child allowances are feeble, and indeed, there is aging process of the population and society in Azerbaijan and reduction of children over the past 20 years.

Advocates of the second counter plea insist that no targeted program of social aid for children is meant to be provided in Azerbaijan, for penurious families are more than provided with this aid. Under official statistics, the number of participants of targeted programs of social aid is reducing in Azerbaijan. As of the end 2018, participants of targeted programs of social aid numbered about 50 000. But not all families have children or many children. There is one parent in some of them; even if there is a great quantity of children, a volume of targeted social aid is not great enough to meet needs of parents to maintain children. When adjusted for the fact that targeted social aid may, at best, embrace 10% of large families, it is, perhaps, insufficient to meet needs of children in education, public health and consumption.

As for granting social allowances, lump-sum allowances are, as a rule, secured for children at birth. However, monthly social allowances are granted to children with identified disabilities. In this connection, monthly allowances for disabled children fit with their medical needs or are used to meet tutors" necessities.

Another argument is that in case of housefather" loss the children accept allowances; however, the loss of family income does not necessarily mean that these requirements are fully covered by children allowances. As a rule, those having lost housefather do lose an essential part of their income. This implies that children allowances compensate for an insignificant part of financial losses of the family, so it"d be wrong to entangle children allowances here. The most important thing in this matter is to restore children allowances in Azerbaijan and heighten government care for children.

- Deputy Siyavush Novruz says that child benefits are granted in countries with no demographic growth. Is the deputy right?

- A closer look at the international experience reveals that there are three varied methods to help parents. In some countries child allowances are accounted for by the number of children in a family. For instance, in the countries with demographic growth an amount of child benefits goes down as the number of children in a family grows. Other countries are not notable for demographic growth; if the number of children in families grows, they are paid more. For example, as the number of children in Germany grows, the volume of child allowances reduces.

However, an amount of child benefits tends to grow as the number of children grow in Great Britain. The same is true of Canada.

Another approach is that child allowances are associated with family incomes. Families with low income are paid higher money for a child so that this family could care for a greater number of children. An amount of child benefits is inversely proportional to family incomes. Where family incomes are low, they accept greater aid for children. Such an approach is applied in Italy. There is a connection between family incomes and child care in the United States. Where an income is low, government"s care for children is higher; where an income is higher, government"s care for children id lower. I mean an amount paid by government for children.

It has to be kept in mind that Azerbaijan may join this model as well. I think it"d be wrong to grant children allowances to all families indiscriminately. To my thinking, the question is about a family income, its contents and requirements.

The third approach conventional for in the international practice is child tax benefits against the number of children. Most probably, the point is about tax refund. This practice is used in the USA, Canada, Australia and Great Britain. In my opinion, it is important from tax remissions and refund standpoint. For this reason, I do not agree with an idea that child benefits are not granted in countries with no demographic growth but in those with demographic growth only.

Many countries, including not only Europe and the United States but Australia and neighboring Russia, are engaged in granting child allowances. While it is still in effect, an amount paid to children may be dependent upon children"s age in the family. In most countries, amounts for children aged 0-6, 6-10, 10-15 vary. In other words, children aged 0-6 are paid lesser while children aged 6-10 are paid more, average sum, and children above 10 paid still more. I think that in addition to family income-based child allowances other practices may be used in Azerbaijan as well.

- If a family is responsible for child development and the government is unwilling to help parents, why should the government demand anything from grown-ups? To call into army? What is logic?

- A healthy height and physical strength in Azerbaijan are a matter of paramount importance, especially as our country is in belligerency. Our neighbor has occupied some Azerbaijani lands. At present, the Azerbaijani youth serves in army to liberate occupied lands. In this respect a physical health and development of Azerbaijani children is one of the most important challenges of the state.

The problem is that recent studies go to show that there is reduction in children"s weight and height in Azerbaijan as compared to previous periods and accepted standards. An eloquent testimony to this are observations at armed forces centers. Granting this, I believe that the government must take care of country"s children. If the government takes no care of country"s children, it"d be illogical for the government to demand from grown-up children to fulfill their duty. The Azerbaijani youth is always ready to defend their homeland. In turn, the government must realize that it"d be appropriate to take care of its call-up citizens from earliest infancy. Hence, it is essential for the government to grant child allowances for normal nutrition, health and education in Azerbaijan.

- As a whole, how are child benefits calculated in Azerbaijan? What do you recommend?

- As for calculation of child benefits, a model used in Azerbaijan must depend upon family income and the number of children. As a rule, families with low incomes have a larger number of children. For this reason, per capita calculations have to be made not only by the number of children but their age as well. In my opinion, preferential terms should be provided by three age groups: relatively low payments for age group 0-6 years; average level of payments for age group 6-10 years and high payments for age group 10-17.

At present, the number of children aged 0-14 in Azerbaijan is more than 2.200. 000. In this case if an allowance for average child is 100 manats, some 2,4 bln manats a year will be required. This is a big money. On this assumption, child allowances cannot be granted to all children. Families rich enough to satisfy requirements of their children or those with incomes from business activity are in position to meet their children needs. In this case the government should not take this burden upon itself.

However, the state must take care of children from low income families, unemployed, including indigents and parents of disabled children. In other words, child allowances are to be calculated with due regard for family income levels. Allowing for the fact that persons with low income need greater amounts of child benefits, it is obvious that higher amounts should be paid to them. In turn, families with medium incomes may be provided with deliveries of small aid to meet needs of their children. That"s my own model. Should the government adopt this model, the budget of Azerbaijan would not be overloaded. The budget of Azerbaijan has funds enough to pay child benefits.

If we avail of the budget effectively, we"ll be able to find sources for financing our children even without increasing incomes and expenses of our budget. Regretfully, the budget is not used properly, it is not transparent, and budget misappropriations are growing. Since a final distribution of budget funds is in the hands of an executive power, reports on how, where and who expends it remains secret. So the resolution of the issues above is meant to be determined within the framework of budget transparency ansd accountability.

One of the programs of this kind is the government childcare program to be possibly included in the next year budget, so allocation of funds may start with indicators" definition.