Minister: Azerbaijan to roll out major social package next year

A major social support package is planned for implementation in Azerbaijan in 2027, Finance Minister Sahil Babayev said at a joint meeting of the Milli Majlis committees on Legal Policy and State Building; Defence, Security and the Fight Against Corruption; Human Rights; and Regional Affairs, during discussions on the draft law "On the State Budget for 2027."

He said funds for the social package had been earmarked in the budget as reserves.

"Once the proposals prepared by the government are submitted to the head of state in their final form and the relevant decrees are signed, these funds will be allocated. The specific figures will become clear at that stage," the minister said.

Babayev noted that pensions were indexed annually to protect public welfare, particularly that of pensioners.

He said the indexation was based on the increase in average wages over the previous year and had averaged around 9% over the past five years.

At the same time, he noted that both inflation expectations and the actual inflation rate for the current year stood at 5.6%, while the forecast for next year, based on data for the first 10 months, was 5.3%.

"Since pension indexation is traditionally calculated based on recent yearschr("39") figures and the growth in average wages over the first 10 months of the current year, we expect it to exceed the inflation rate this time as well, resulting in an increase in household incomes," Babayev said.

The minister stressed that he could not yet specify the exact indexation rate for next year, as it would be determined based on the 12-month increase in average wages.