Tuesday November 28 2023

State Social Protection Fund’s revenues hit $1.4bn

28 July 2020 16:30 (UTC+04:00)
State Social Protection Fund’s revenues hit $1.4bn

By Ayya Lmahamad

The revenues of the State Social Protection Fund under the Ministry of Labor and Social Protection of Population increased by 21 percent - from AZN 449 million ($264.1M), to AZN 2.5 billion ($1.4bn) - in the first six months of 2020, the ministry’s press service reported on July 27.

Furthermore, the revenues of the Fund for state compulsory social insurance contributions increased by 34.2 percent or AZN 434.3 million ($255.4M), compared to the same period of 2019, amounting to AZN 1.7 billion ($999.9M).

Thus, the semi-annual revenue forecast was fulfilled by 110.1 percent for budget organizations and 117.3 percent for the extra-budgetary sector.

As a result of transparency in appointment of pensions, and elimination of undue pensions, AZN 238 million ($139.9M) are saved annually.

Additionally, during the reporting period, as part of the reforms undertaken to optimize the Fund's operations, the centralization of personal records and social benefits was ensured.

Over 85,000 people received pensions, allowances and pensions electronically without contacting officials and citizens, and 324,000 people received electronic certificates.

It should be noted that since early 2019, a system of assigning pensions in Azerbaijan was launched electronically, while benefits and stipends were paid electronically as of late 2019.

These electronic systems have made it possible to provide active services to citizens when they are entitled to pensions and allowances. As a result, electronic appointments are made for the relevant types of social security without the need for these persons to apply to any organization or submit documents.

It should be noted that in first half of 2020, about AZN 105 million ($61.7M) was directed to payment of targeted social assistance, which is 62 percent more than in the same period last year.

Additionally, in the first six months of 2020 the volume of social payments paid in Azerbaijan, including pensions and allowances, amounted to about AZN 3 billion ($1,7bn). This covers 48 percent of the population, who additionally received AZN 600 million ($352.9M) due to the coronavirus pandemic.

Moreover, in January- June this year, the Ministry of Labor and Social Protection of Population allocated AZN 2.2 billion ($1.3bn) to finance pensions of about 1.3 million pensioners, AZN 475 million ($279.4M) was paid to 743,000 people as part of social benefits and pensions. Additionally, AZN 105 million ($61.7M) was allocated for financing of targeted public social assistance to more than 350,000 members from about 5,000 families.

As part of the measures of state social support in connection with the pandemic, AZN 229 million ($134.7M) was allocated for proving lump sum payment of AZN 190 ($111.7) per month in period of April- May to 600,000 unemployed.

As of 1 July 2020, more than 85,000 citizens have been assigned pensions, allowances and scholarships through electronic systems. It should be noted that, since the beginning of 2019, a system of assigning pensions in Azerbaijan was launched electronically, and in the last months of last year – benefits and stipends.


Follow us on Twitter @AzerNewsAz

Latest See more