Azerbaijan to increase share of pension expenditures in GDP in 2012

Azerbaijan, Baku, Dec 19 / Trend A.Akhundov/ Additional funds for pensioners will be 410 million manat as a result of pension reforms in Azerbaijan in 2011, which is 17 percent of the State Social Protection Fund's (SSPF) revenues in 2012. The statement was made during an interview with SSPF Chairman Salim Muslimov for the ruling New Azerbaijan Party's website. "On the other hand, after these reforms, the amount of 97 percent pensions exceeded the level of monthly income below which is the poverty line in Azerbaijan " Muslimov said. Muslimov said that, the ratio of average pension to average wage exceeded 40 percent after the transition to a single principle of calculation of pensions in 2011. "The share of pension expenditure in GDP will grow and reached 5.34 percent in 2012 after that. For comparison, the figure stood at 3.9 percent in 2003. It stands at eight percent In Russia, 4.7 percent Kazakhstan, 13 per cent in Germany and France, 15 percent in Austria and Italy" Muslimov said. Muslimov noted thata major challenge this century is facing the problem of maintaining a balance between gradually tapering economic opportunities while increasing state funds to ensure decent living for the elderly population, whose share in the population increases. The official exchange rate on Dec 19 is 0.7864 AZN/USD. Do you have any feedback? Contact our journalist at agency@trend.az