Economy Minister Mikayil Jabbarov has said that Azerbaijan is entering a new stage of development, which will cover 2022-2030.

He made the remarks during the discussion of the draft law “On the state budget of Azerbaijan for 2022” at a meeting of the parliamentary economic policy, industry and entrepreneurship committee on November 10.

“We are facing primary tasks of ensuring the sustainability of economic growth, further strengthening financial stability of national economy and restoring the liberated territories. To this end, fruitful discussions were held between the relevant structures," he said.

Economic growth

The minister stated that Azerbaijan’s economy is forecasted to grow by more than 5 percent in 2021. Jabbarov also recalled the growth of added value in the non-oil sector in the first nine months of the year.

He noted that the government has been pursuing a policy to develop industrial zones. Jabbarov added that over 500 documents in the investment promotion field have been issued in the country so far.

“As for public investments, the preliminary bill of the state budget for 2022 envisions impressive funds for this,” he added.

State budget allocation

Finance Minister Samir Sharifov said that AZN 2.2. billion ($1.3bn) will be allocated from the state budget for the restoration of Azerbaijan’s liberated territories in 2022. He stressed that the restoration of liberated territories will remain the main priority in 2022.

The minister added that the state budget for 2022 envisages increasing funds for further strengthening the country’s armed forces. Thus, it is envisaged to allocate 15 percent of the 2022 state budget spending, i.e. AZN 4.49 billion ($2.6bn) for this purpose.

The minister added that expenses of the wage fund for military personnel serving on the liberated territories were increased by AZN 761 million ($447.6M).

Moreover, Sharifov stated that subsidies in the amount of AZN 479 million ($282M) are planned to be allocated from the state budget for transport and communications. He added that due to the fact that the interest in services provided to the population is lower than their cost, it is planned to allocate subsidies to a number of state structures.

He has said that the charter capital of Azerbaijan's Educational Student Credit Fund will be increased by AZN 22 million ($12.9 million) or 27.5 percent - from AZN 80 million ($47 million) to AZN 102 million ($60 million) in 2022. The minister noted that the increase will be made through funds envisaged for these purposes in the state budget.

Wages increase

The finance minister said that the 2022 state budget envisages the increase of wages in line with the Azerbaijani president's instructions.

He noted that over AZN 3 billion ($1.7bn) will be allocated for social protection and social security next year.

Moreover, Mikayil Jabbarov stated that the average monthly salary in Azerbaijan in 2022 is projected at AZN 807 ($474.92). The minister noted that the real growth rates of the average monthly wages next year are projected at 4.7 percent.

"I would like to assure that the implementation of the new strategy will lead to new changes in the economy. The next five years will be the main period for the reintegration of the regions liberated from the occupation into the economy of Azerbaijan," he said.