Azerbaijan raises subsistence minimum, criterion of need
By Ofeliya Afandiyeva
The Azerbaijani president has approved the law on the subsistence minimum and the criterion of need for 2020.
According to the document, minimum subsistence level for the next year is set at $118 for able-bodied citizens, $92.3 for pensioners and $100 for children.
The president also approved the law "On the criterion of need in Azerbaijan for 2020", according to which the criterion of need for the appointment of targeted social assistance is set at $94.
The document was brought up for discussion in the third reading and was adopted at the plenary session of Azerbaijani Parliament held on November 29.
For comparison, the subsistence minimum for 2019 was set at $105 countrywide. For able-bodied citizens it was appointed $112, for pensioners - $87.6 and for children - $94.
The criterion of need for 2019 was set at $84.
The government has been carrying out considerably significant social reforms.
As a result of this, the minimum wages were increased from $76.3 to $146.6 - second time in 2019.
As the Executive Director of the Center for Analysis of Economic Reforms and Communication Vusal Gasimli said earlier, currently, the minimum wage in Azerbaijan exceeds the cost of living by 40 percent. This growth also indicates an increase in the average monthly wage in the country. By the end of 2019, it will increase by about 15 percent to reach $366.6.
He also mentioned that the package of social reforms in 2019 covered 4.2 million people, and the financing of these reforms amounted to $2.3 billion.
Additionally, according to recent statement by Minister of Labor and Social Protection of the Population of Azerbaijan Sahil Babayev, the minimum amount of pensions in 2019 firstly increased to $94, and then, according to the presidential decree dated October 1, 2019, increased to $117. Thus, this year the figure increased by 72 percent. In general, the growth of pensions covered 660,000 pensioners in the country.
The 40 percent of the 2020 budget is socially oriented, and there is a significant growth in outlay on education, science and healthcare. Noticeable part of the budget's expenditure is directed to health care. Healthcare expenses will increase by 34 percent compared to 2019 ($612.9 million) and will amount to $823.5 million in 2020.
Note that Azerbaijan’s state budget revenues for 2020 are projected at $14.2 billion and expenditures at $15.8 billion.
Note that the state budget revenues for 2020 are projected at $14.2 billion and expenditures at $15.8 billion.
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