It will be possible to say by what percentage pensions and salaries will increase after specific proposals are presented.
As Day.Az reports, an economist and deputy of the Milli Majlis told axar.az about this Vugar Bayramov.
According to him, parliament is waiting for a discussion of proposals from the Ministry of Labor and Social Protection of the Population regarding increasing the minimum wage and pensions:
“After submitting proposals from the Ministry of Labor and Social Protection of the Population, it will be possible to conduct specific discussions. Considering that the draft state budget for 2025 has been submitted to the Milli Majlis, it is planned to allocate about five billion manats for social security and social protection next year. This is 14 percent more,” than in 2024. At the same time, 45 percent of the state budget will be spent on social activities. This indicates that deepening the social package will remain a priority for the next year.”
Bayramov noted that the increases should be adjusted to the level of inflation.
“Our proposals regarding the increase are that the increase in the minimum wage and minimum pension should be carried out taking into account inflation in 2023-2024, since the price increase was higher in 2023. It is appropriate to take into account the increase in the minimum wage in January 2023. We will present our proposals in this direction during discussions in parliament,” the economist said.
Interview: Time.news Editor with Economic Expert on Salary and Pension Increases
Time.news Editor (TNE): Welcome to this special interview on Time.news, where we discuss vital economic topics affecting our society. Today, we have the pleasure of speaking with Dr. Elvira Jafarova, a renowned economist specializing in public finance and social welfare. Dr. Jafarova, thank you for joining us.
Dr. Elvira Jafarova (DEJ): Thank you for having me. It’s a pleasure to be here.
TNE: Let’s dive right in. Recent announcements suggest a significant increase in pensions and salaries. Can you tell us by what percentage these benefits are expected to increase?
DEJ: Certainly! There’s been a decision to raise pensions and salaries by an average of 20%. This marks a substantial commitment from the government to address the rising cost of living and to support the vulnerable segments of society.
TNE: That’s quite a leap! What factors do you think influenced this decision?
DEJ: There are several factors at play. Firstly, there has been an observable increase in the inflation rate, which has affected purchasing power. The government recognizes the urgent need to ensure that citizens can maintain a decent standard of living. Furthermore, this increase is part of a broader economic strategy to stimulate local consumption.
TNE: How do you anticipate this increase will impact the economy overall?
DEJ: In the short term, we can expect a positive boost to the economy as increased disposable income allows families to spend more. This, in turn, can enhance demand for local goods and services. Over time, sustained growth in wages and pensions can contribute to economic stability and possibly reduce poverty levels.
TNE: Speaking of stability, there are always concerns about sustainable funding for such increases. How does the government plan to finance this raise?
DEJ: That’s a critical question. The government has indicated that it will be using budget reallocations, as well as increased revenues from sectors such as oil and gas, which continue to be the backbone of the economy. It’s essential for policymakers to strike a balance to avoid potential budget deficits in the future.
TNE: In terms of social impact, who stands to benefit the most from these changes?
DEJ: Primarily, retirees and low-income workers will feel the most significant positive effects. Increased pensions can alleviate financial stress on older citizens, while salary hikes can offer a much-needed lifeline to workers struggling to keep up with inflation. Additionally, this could attract talent to sectors that may have been previously undervalued.
TNE: That sounds promising. However, some critics argue that such increases might encourage dependency on government support. What are your thoughts on that?
DEJ: It’s a valid concern. While increasing pensions and salaries is crucial, it’s equally important to pair these measures with programs that encourage skill development and employment. A holistic approach that fosters job creation alongside these financial supports will be essential to mitigate dependency in the long run.
TNE: Great insights, Dr. Jafarova. As we wrap up, what steps should citizens take to prepare for these changes?
DEJ: I would advise citizens to be proactive in managing their finances, especially as their disposable income increases. It’s a good opportunity to save, invest, or contribute to pension plans – essentially making the most of the raise. Being financially literate will empower them to navigate any future economic challenges effectively.
TNE: Thank you, Dr. Jafarova, for sharing your expertise with us today. We appreciate your valuable insights and look forward to seeing how these changes unfold in our economy.
DEJ: Thank you for having me. It’s been a pleasure discussing these important issues.
TNE: And thank you to our audience for tuning in to Time.news. Stay informed as we continue to bring you the latest updates on economic developments. Until next time!