By Ayya Lmahamad
The volume of the State Social Protection Fund’s expenditures increased by 24 percent or AZN 453 million ($266.4M) in the period between January and June in 2020 compared to last year, the Ministry of Labor and Social Protection of Population reported on August 6.
During the reporting period, the amount of transfers to the State Social Protection Fund for fulfillment of the state obligations on financing of pensions was established at the rate of AZN 903 million ($531.1M). Of these, AZN 848 million ($498.8M) were used.
The amount of transfers was by AZN 55 million ($32.3M) or 6 percent less than forecast.
Earlier it was reported that 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.
Moreover, the average monthly pensions in Azerbaijan increased by 27 percent in the first six months of current year reaching ($176.4). Average monthly retirement pensions also increased by 25.24 percent to about AZN 330 ($194.1) during the reporting period.
Azerbaijan, with an index of 476 international dollars, ranks first among CIS countries for the level of the minimum pension.
It should be noted that in recent years, significant saving of financial resources in the field of social protection as a result of optimization, effective management, transparency and prevention of unjustified expenditures has significantly reduced the fund's dependence on transfers.
The relative share of funds allocated from the state budget in the fund's revenues is projected to decrease by 13 percent to 25 percent in 2020 compared to 2017. This is a key indicator to reduce the fund's dependence on the state budget and increase its financial sustainability.
It should be noted that, electronic distribution of pensions, elimination of fraudulent and unjustified pension cases, strengthening of administrative control measures and ensuring transparency, allowed to save AZN 55 million ($32.3M) in the first half of 2020.
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