The increasing economic power of our country allows to solve social problems of the population, hold consistent events for the improvement of the social welfare.

In this regard, the state budget for 2020 creates positivity. Thus, The 2020 state budget, which is the biggest budget of the independent period, is also bigger than its “predecessors” in terms of social expenditures.

The table below reflects the budget expenditures and social expenses of the last 10 years:

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It becomes clear that the share of social expenditures in the budget has risen from 9.5% to 12%. It is true that the low-income groups of the population, unemployment and poverty have declined year by year as a result of the opening of new workplaces and increase of entrepreneurship and self-employment. However, in any case, the state continues the socially oriented policy. President Ilham Aliyev has also said numerous times that this policy would be continued.  

At the economic meeting held on December 15, the head of state noted that social expenditures would take a special place in the 2020 budget: “I should say that next year’s budget must be both socially oriented, and investment oriented. Next year, we will implement serious social programs; significant steps will be taken to better the living standards of the population; we have to have enough finances to execute infrastructure projects. However, we should take a closer look at the expenditures of next year; the government should come up with proposals in order to ensure transparency”.

In general, 40% of the budget is socially oriented, and there is an increase in the finances allocated to education, science and medicine. The big part of the budget expenditures is allocated to medicine. In 2019, the medicine expenditures grew by 31% and reached 1 billion 400 million AZN.

 “We have tightened our belts”, but…

The economic crisis, that was felt in 2007 and grew in 2008-2009, further deepened when the oil prices on the world markets fell from 150 USD to 30 USD in 2014-2015. The economic turbulences caused a more serious crisis in the countries which economy was connected with oil. Undoubtedly, the global crisis also had an impact on Azerbaijan which is a part of the world economy and the main export product of which is oil. Despite this, Azerbaijan got out of the situation with minimal losses due to its flexible, mobile policy.

It is the reflection of the priority of the social policy that Azerbaijan did not cut social expenditures even when the impacts of the world economic crisis were felt in our country, and “tightening belts”, in other words, the economy regime did not reflect on the social expenses.

The last 16 years

Every Azerbaijani citizen feels the consistent social policy in their lives.

The dynamic changes of the last 16 years are clearly reflected in figures.

-          Salaries have grown by 8 and pensions by 10 times.

-          Unemployment has declined from 50% to 5% and poverty to 5%.  

Moreover:

-          Finances in the amount of more than 67 bln AZN have been allocated to the development of regions;

-          Over 2 million new workplaces have been created and so on.

At the same time, the solution of social issues of families of martyrs, Karabakh war invalids is always in focus. Consistent measures are taken for the improvement of the living conditions of people of this category. From 1997 till 2018, 4, 597 apartments and private houses were given to Karabakh war invalids, 1, 582 to families of martyrs, 475 to invalids of the Second World War, Chernobyl and wars. From 1998 till 2018, invalids of Karabakh war were provided with 6, 155 cars. The providing of 600 additional cars is also planned.   

Since the beginning of the year, 700 apartments and private houses were given to citizens of this category. It is planned to hand over 234 apartments and private houses by the end of the year.

It will be continued!

On December 24, while delivering a speech at the ceremony of presenting apartments and cars to families of martyrs and Karabakh war invalids in Baku’s Nizami district, President Ilham Aliyev clearly stated once again that this policy would be continued consistently: “Over the last years, more than 7, 500 apartments and private houses, about 7, 000 cars have been handed over to families of martyrs and invalids of Karabakh war. I can say that it happens very rarely on a global scale. I consider that Azerbaijan pursues the right policy in this field, as an Azerbaijani citizen is in the center of this policy, especially those who sacrificed their lives and health for the sake of their Motherland.

This policy will be further continued. Next year, it is planned to hand over at least 1, 500 apartments and private houses. Despite the fact that it was planned to hand over about 800 apartments early this year, the number of such apartments and houses reached 900 as a result of the additional finances. Moreover, hundreds of cars have been handed over. It will definitely be pleasant to live in such a beautiful building. I want to say once again that you deserve it”.

The economic situation of the Azerbaijani state creates an opportunity for the implementation of social priorities. This economic stability and financial increase have been achieved as a result of the right political course. As a result of the consistent measures taken for the diversification of the economy, promotion of the non-oil sector, entrepreneurship, attraction of foreign investments, today, Azerbaijan’s economy is sustainable, and the budget revenues, naturally, increase. In the country, which once had the GDP if 400 mln AZN, this number is now over 82 bln AZN. All this creates an opportunity for solving citizens’ social problems.

Families of martyrs, invalids and veterans of Karabakh war, as well as our citizens suffering from the occupation, are surrounded with the state’s attention and care. This year, citizens of this category have been provided with approximately 6, 000 apartments and houses. The head of state noted that over 2, 000 citizens among the families of martyrs are in a queue for apartments, and their problems will also be solved in 2-3 years.

The social reforms package approved by the President early this year, envisaging 4.2 million people and in the amount of 5.3 bln AZN, the decision about the problematic loans, institutional and staff reforms are the reflection of the dynamic development. Benefits have increased by 50%, minimum salary by 2 times, minimum pension by more than 70%. As a result, Azerbaijan is in the first place among the CIS countries on the purchasing power of the minimum pension. However, this is not the end.

The head of state says in this context: “Nevertheless, it does not mean that we are satisfied with it, no. We want it to increase, and I am confident that it will grow. To achieve this, there is a need for an increase in the economic sphere as well, as we use resources we have. We do not receive support from anywhere, and we see no need for that. Therefore, we should plan our budget the way so that the tasks before the country are fulfilled, projects for the development of the non-oil sector are implemented and we execute social projects at the expense of the obtained revenues. Therefore, our currency reserves increase year by year. Even when our revenues sharply fell in 2015-2016, we still proposed a new economy package and did not allow our currency reserves to decline, because it positively impacts the rate of AZN, and at the same time, it is our main reserve”.

Thus, 2019 can be characterized as the year of the revolutionary steps in the social sphere. Next year’s state budget, the share of social expenditures in the budget and the political will make us confident that this policy will be continued consistently in 2020 as well.

Vusal Mammadov