PENSIONS, ALLOWANCES, LOANS

Results of large-scale reforms initiated by the government of Azerbaijan became clear with the start of year 2019. GDP growth in January reached approximately 3%. "This is the highest figure in the last 2-3 years, indicating that in 2019 Azerbaijan will ensure and continue high rates of economic growth," President Ilham Aliyev said at the meeting on economic and social issues.

Economic growth

According to President Aliyev, 2017 was economically stable for Azerbaijan. In 2018, the government implemented serious reforms. "In 2019, we will continue and deepen economic reforms," Aliyev said.

According to the president, the growth of non-oil industrial production in January was about 14%, which "is one of the highest rates in the world." "Economic and macroeconomic situation in Azerbaijan is stable. The exchange rate of the national currency is also stable, inflation is very low. This shows that reforms produce good results, and serious reforms in 2019 will contribute to progress and improvement of the public welfare," the president stated.

Undoubtedly, this year will be radically different from previous years in terms of social development and protection. The basis of all reforms, including economic reforms, is the state’s desire to solve the pressing social problems of citizens. This is a huge package of changes in tax and customs policy, and new benefits and preferences for the private sector, etc. As a result, they all have a positive effect on state revenues, which makes it possible to seriously increase public income.

"In January 2019, state revenues from taxes and customs duties exceeded the planned figures. In particular, the Ministry of Taxes provided more than ₼80 million more than originally planned, the State Customs Committee - more than ₼20 million. In general, additional revenues reached 105 million," President Aliyev said.

Ilham Aliyev added that the State Oil Fund of Azerbaijan also significantly increased revenues in January 2019. "Additional funds allow us to direct them to improving the social well-being of population and measures to strengthen social protection. In general, the package of social proposals covers about 2.2 million people," the president underlined.

Solving social problems

Over the past months, President Aliyev signed a number of documents initiating a significant increase in the minimum wage and minimum pension - almost 38% each. Thus, the increase in the minimum wage from 130 to 180 manat covered 600 thousand people. "We are not happy with this figure, in fact. I gave relevant instructions to prepare a set of proposals concerning further increases in the minimum wage," President Aliyev said.

The same applies to the minimum pension, which grew from 116 to 160 manat, which will improve the pension coverage of 223,000 people. Today Azerbaijan ranks second in the CIS in terms of the minimum pension.

The government also increased scholarships for about 100 thousand students, increased age benefits for disabled people, for children under 18 years of age with disabilities, payments to guardians of orphan children, social benefits to children from families serving in the military, women with more five children, payments for the birth of a child, funeral allowances, etc. In general, this increase will cover 577 thousand people with ₼400 million allocated from the state budget.

A large package of social decisions concerns the families of the fallen in the war, including a lump-sum payment of ₼11,000 to their heirs (almost 12,200 families), increase in benefits from ₼242 to ₼300, and provision of housing.

Also, the government initiated large-scale construction programs targeting internally displaced persons. "Last year 5,900 families of displaced persons received housing. This year, however, we are planning to offer a new housing solution to 6-7 thousand families of displaced persons," said President Aliyev. In addition, he ordered a 50 percent increase in benefits for this group of people from April 1, 2019.

Furthermore, the government will shortly solve one of the annoying problems for citizens over the years – registration of the newly built multi-apartment buildings, which had remained unregistered for unknown reasons.

Solution for problem loans

Also, President Aliyev announced the government's decision on solving the problem loans. "We have been working on proposals for more than two months. This is not an easy question. Our objective was to improve the well-being of citizens, reducing their financial burden. This should be understood as a serious social initiative," President Aliyev said.

President believes that the issue will be solved in the near future, and Azerbaijan will demonstrate leadership in solving this problem. "We know that the governments of some countries have made similar decisions but have not implemented them. It is not about good intentions, but conducting the right analysis and choosing the most acceptable option for citizens," President Aliyev said.

Apparently, we can expect pleasant surprises in 2019, which will seriously change the socio-economic situation in Azerbaijan.