Chair of the Milli Majlis Sahiba Gafarova said while opening the plenary sitting on 28 December that there were 12 items on the agenda with 9 of them being the draft 2021 State Budget of the Azerbaijan Republic and the draft laws in the Budgetary Parcel, all coming up for the second reading.

Chairman of the Milli Majlis Committee for Economic Policy, Industries and Enterprising Tahir Mirkishili briefed the Parliament on the 2021 State Budget of the Azerbaijan Republic Bill. He mentioned that the next-year State Budget's revenues would equal AZN 25 bn 427 mn being AZN 1 bn 303 mn more than this year and the expenditures would rise by AZN 1 bn 50 mn to AZN 28 bn 543 mn. The budgetary deficit would equal AZN 3 bn 116 mn, the inflation would make 3% and the GDP would rise by 3.4%; the price of oil underlying the 2021 budgetary projections equals $40 per 1 barrel. The spending on enhancing the national defence potential and on further improvement of the logistical provisions for the Armed Forces is raised by AZN 500 mn while the social spending is set to become AZN 563 mn more than this year. Both these spending items are devised to finance the implementation of the special strategy that President Aliyev is furthering in both aforementioned fields. As many as 36 MPs spoke during the parliamentary deliberations on the first reading of the Bill; the issues raised by them have been given due attention, according to Mr Mirkishili.

The MPs Emin Hajiyev, Tahir Karimli, Elshan Musayev and Fazayil Agamali voiced their ideas about the 2021 State Budget of the Azerbaijan Republic Bill, whereafter it was put on vote and approved in the second reading.

Chairman of the Labour and Social Policy Committee Musa Guliyev briefed the assembly on the draft (in the second reading) 2021 Budget of the State Social Protection Fund then. According to Mr Guliyev, the exhaustive information about the Bill was made available during its first reading when seven MPs put forth the valuable proposals that have been discussed at a committee meeting and been communicated to the concerned offices. Those of them that are deemed feasible will be taken into consideration eventually.

Mr Guliyev went further to say that the revenues and expenditures of the SSPF would rise by 7.6% alike next year. Besides, the pensions will continue rising and will go approximately 9.3% up. The average monthly retirement pension will be increased by AZN 38 to AZN 340 whilst the old age pensions will equal AZN 370 monthly on the average as forecast. This is a vivid practical manifestation of the purposeful social policy implemented by the president of Azerbaijan. The benefits are forecast to rise considerably as well. On the whole, the SSPF Budget drawn up for next year will serve as a solid foundation for the intended reinforcement of the social protection of the lower-income fellow citizens.

The MPs Soltan Mammadov, Siyavush Novruzov, Fazil Mustafa, Elman Nasirov, Bahrouz Maharramov, Malahat Ibrahimghizi, Aydin Mirzazade and Aghil Abbas voiced their ideas and proposals concerning the Bill.

After that, Chairman of the Labour and Social Policy Committee Musa Guliyev made the assembled aware of the draft 2021 budget (the second reading) of the Unemployment Insurance Fund. Mr Guliyev told them of the forecast increase in the UIF revenues and expenditures put together to AZN 157 mn 769 thousand next year, adding that a bigger portion, namely, AZN 69 mn, would be applied to arranging the self-employment promotion action which, in turn, would ensure employment of the Garabagh gazies.

The Bill was put on vote and approved in the second reading.

As for the next agenda item, namely, the Bill 'On the Minimum Subsistence Wage in the Azerbaijan Republic in 2021’, it was tabled for the second reading by Chairman of the Committee for Economic Policy, Industries and Enterprising Tahir Mirkishili. Mr Mirkishili said that the country-wide subsistence wage should rise from AZN 190 to AZN 196 in 2021. The minimum subsistence wages for the employable population, pensioners and children are forecast to rise from AZN 201 to AZN 207, from AZN 157 to AZN 162, and from AZN 170 to AZN 175 respectively.

MP Fazil Mustafa commented on the matter. Then, the Bill was approved in the second reading.

Chairman of the Labour and Social Policy Musa Guliyev briefed the MPs on the Bill 'On the Limit Need Tested in the Azerbaijan Republic in 2021' in the second reading. According to Mr Guliyev, the need criterion is forecast to rise by AZN 10 or 6.2% to AZN 170 next year.

The Bill was put on vote and approved in the second reading.

The information brief on the draft amendments (the second reading) to the Budgetary System Law came from Chairman of the Committee for Economic Policy, Industries and Enterprising Tahir Mirkishili. The amendments are of a technical nature, he remarked: given that the form of incorporation of the SSPF had been changed since 2019, it was proposed to replace the wording 'the budget of the of the entity (body) assigned by the appropriate executive authority implementing social provisions and protection' with the wording 'the budget of the State Social Protection Fund'.

The Bill was put on vote and approved in the second reading following the comments made by MP Aydin Huseynov.

Then, Chairman of the Labour and Social Policy Committee Musa Guliyev tabled the three closely interrelated issues for the second reading.

The amendment to the Social Insurance Law has to do with the status of the SSPF having been changed to that of a public legal entity. This entity will be called the State Social Protection Fund from now onwards.

As for the import of the proposed amendments to the Retirement Pension Law and the Law on the Social Benefits, the goals here are to strengthen the social insurance principles involved in assignment of pensions and social benefits, merge the pension supplements and several benefits due to citizens in the certain eligible categories with the Presidential Allowance, extend by another two years the pensionable service grace period and intensify the reforms designed to digitalise the pension assignment as a whole.

The MPs Siyavush Novruzov, Fazil Mustafa, Tahir Karimli, Razi Nurullayev and Fazayil Agamali stated their views upon the Bills. Then, all the three Bills were put on vote and approved in the second reading one by one.

That was followed by the third-reading deliberations upon the amendments to the Law on Political Parties, during which Deputy Chair of the Milli Majlis and Chairman of the Committee for Public Associations and Religious Entities Fazayil Ibrahimli pointed at the Bill meeting all the third-reading requirements.

First, the MPs Fazil Mustafa and Siyavush Novruzov remarked upon the matter. Then, the Bill was put on vote and approved in the third reading.

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The sitting of the Milli Majlis was resumed after an intermission.

Chair Sahiba Gafarova mentioned that two additional items had been suggested for the agenda, namely, the draft amendments to the Tax Code of the Azerbaijan Republic and to the State Debt Law (both in the first reading).

Those two new items were approved and entered into the agenda, whereafter Madame Chair concluded that the agenda now had the 4 last items, all concerned with the Bills coming up for deliberations in the first reading.

Deputy Chairman of the Milli Majlis Committee for Economic Policy, Industries and Enterprising Ali Masimli advised the colleagues of the draft amendments to the Insolvency and Bankruptcy Law and to the Tax Code of the Azerbaijan Republic. Mr Masimli remarked that both drafts were meant to streamline the protection of creditor rights including by reducing the time, the number of procedures and expenses that the associated processes take up, subject to the World Bank 'Doing Business' report's indicators 'Resolving Insolvency', 'Paying Taxes' and 'Registering Property'. It is understood that the amendments and their effect once they are enacted would improve further Azerbaijan's position in the 'Doing Business' with regards to the said indicators.

The MPs Razi Nurullayev and Rufat Guliyev shared their views upon the draft amendments. After that, each Bill was put on vote and approved in the first reading.

As for the draft amendments to the Tax Code of the Azerbaijan Republic in the first reading, the information about them was presented by Chairman of the Committee for Economic Policy, Industries and Enterprising Mr Mirkishili. He explained that it was proposed to add two new articles to the Code. One article stipulates a two-year (beginning in 2021) exemption from the VAT of the equipment and materials to be imported for refurbishment of a major (with the capacity of not less than 3 mn TPA) oil refinery.

There has been a mechanism since 2018 whereby SOCAR has been paid back the value-added tax the company had paid for the equipment imported for use in the refurbishment of the Heydar Aliyev Oil Refinery. That equipment was purchased and delivered to the country; the fees were paid duly and the State Oil Company of Azerbaijan was refunded then. That arrangement functioned for two years; meanwhile, the draft amendments at hand envisage its cancellation whilst the VAT shall not be levied on such imports.

As regards the second draft article, it would introduce a one-year (starting on 1 January 2021) VAT exemption for the contemplated coronavirus vaccine and syringe importation to Azerbaijan, which should made the vaccination cheaper and let it encompass more people.

MP Gudrat Hasanguliyev commented on the item. Then, the document was put on vote and approved in the first reading.

Chairman of the Committee for Economic Policy, Industries and Enterprising Tahir Mirkishili gave the information about the draft amendments (the first reading) to the State Debt Law after that. According to Mr Mirkishili, the purpose of the document is to regulate the relations between the Budget and each off-budget fund. The Guarantee Fund is an off-budget, too; it was established with the main purpose of providing a servicing mechanism for the debts of state-owned companies incurred under state guarantees. The Guarantee Fund settles such debts by itself, after which the concerned state-owned companies make repayments to it in either monthly or yearly instalments. The legislation does have a mechanism to transfer financial resources from the State Budget to the Guarantee Fund but not a mechanism to make reverse financial transfers. So, the proposed amendments would create such a mechanism.

The Bill was put on vote and approved in the first reading.

With that, the sitting of the Milli Majlis drew to a close.

The Press and Public Relations Department
The Milli Majlis