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Akbar Novruz

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A positive global economic climate, combined with stable energy market prices and robust growth in Azerbaijan’s non-oil sectors, has contributed to strong economic performance this year.

In the first eight months of 2025, the expenses of the State Social Protection Fund (SSPF) increased by 9.3 per cent compared to the same period last year, reflecting a rise of 424.6 million manat (≈ $250.6 million). This growth in expenditures stems from the implementation of the new social package in 2025, alongside an increase in the number of beneficiaries receiving pensions and other social support. This surge is linked to the government’s new social package, introduced in 2025, and the steady growth in the number of beneficiaries. As a result, both pensions and monthly social benefits have reached wider segments of the population, further strengthening the state’s commitment to social welfare.

During this period, the number of monthly social benefit recipients rose by 13,000, reaching 466,210 people, while the number of pension recipients increased by 4,244, totalling 405,644 individuals. Overall, the number of monthly beneficiaries and pensioners increased by 17,244 during the first eight months of 2025.

Social expenses expand: what other allocations are planned?

Speaking to Azernews, MP Vugar Bayramov emphasised the role of revenue growth in ensuring fiscal sustainability:

"The increases were also reflected in the number of people receiving benefits and pensions proactively. From January to August 2025, 105,665 social benefits and pensions were proactively assigned. This is an increase of about 5,000 compared to the same period last year. Increases were also recorded in the number of pensioners. As of July 1, 2025, the number of pensioners grew by 2,300 compared to the same period last year, reaching 1,103,300."

Bayramov noted that the increase in citizens benefiting from social support has directly impacted the SSPF’s expenditures. The fund’s spending growth was anticipated and reflected in the approved 2025 budget.

For context, the fund’s approved expenses in 2024 totalled 6 billion 949 million manat (≈ $4.10 billion), while 7 billion 676 million manat (≈ $4.53 billion) are planned for 2025, marking an expected increase of around 10 per cent.

Looking ahead, further expansion of social protection measures—covering pensions, benefits, scholarships, targeted social assistance, and insurance—will continue to influence the fund’s expenditures. At the same time, projected revenues for the SSPF in 2025 are expected to reach 7 billion 617 million manat (≈ $4.50 billion), with 5 billion 997 million manat (≈ $3.53 billion) anticipated from mandatory state social insurance contributions.

Bayramov concluded: "The increase in revenues is a key factor in maintaining fiscal sustainability while expanding social support across Azerbaijan."