As she was opening the scheduled plenary sitting held on 15 March, Chair of the Milli Majlis Sahiba Gafarova reminded the House that that was the fifth sitting of the spring session and that they were to hear the 2021 report by the Cabinet of Ministers, to be presented in compliance with the Constitution.

The acquaintance with that document leads one to think that the socio-economic development strategy formulated by President Ilham Aliyev of the Azerbaijan Republic maintained the growth dynamics in all the segments of the national economy last year. Making the macro-economic stability more robust, economic diversification, the non-oil sector’s growth and the integration with the global economy are the areas all of which had seen tenacious work done throughout the year. Mrs Gafarova quoted in this relation the Head of State having said, ‘The year 2021 has proven successful for our country. During it, we have achieved all our goals. The development of Azerbaijan has been successful and the world knows Azerbaijan as a yet more powerful state today… The well-established support and respect for Azerbaijan have risen that year, chiefly thanks to our Triumph in Garabagh War II, our adherence to all the rules of warfare during it and our decent conduct after it.’

Sahiba Gafarova drew the attention of the assembly to the high rating positions earned by country in the lists of the IFI – earned with its socio-economic development and the relevant achievements made so far. In the World Bank’s Doing Business, for instance, Azerbaijan occupies the 28^th position amongst the 190 countries in total. It follows from the reports by the World Economic Forum that Azerbaijan is the 10^th in their lists for long-term government strategy and the 5^th for the government dedication to reforms.

The GDP growth by 5.6 per cent and the other achievements secured during 2021 were possible thanks to the hard and fruitful work of the Government. The current strategic currency reserve at US$53 bn is six times the external debt of the state already. The economic potential that grew further last year perfectly poises the state to overcome the most complicated tasks that might ever arise before it.

For two years now, Azerbaijan has been at the forefront of the international struggle against the COVID-19 pandemic. Most of the population has been encompassed with the vaccination campaign. Major social packages began to be executed in January this year. On the other hand, large-scale restoration, rebuilding and renovation projects are afoot in the regions of Garabagh and East Zangazur that are now rid of the occupation by Armenia. Further still, Azerbaijan is funding all those operations independently and without appealing for any kind of help from outside.

This year, too, the agenda of the State is huge; one could safely say that this agenda will be fulfilled without fail.

The practice of having the annual reports by the Cabinet of Ministers heard at the Milli Majlis serves to solidify the ties between the Parliament and the Government whilst also ensuring the MPs’ involvement in considering impartially and resolving the State’s socio-economic development issues, in the opinion of Mrs Gafarova.

Several suggestions were made as the previous report was presented by the Cabinet of Ministers at the Milli Majlis last year; as ever, the Government had taken those into account unfailingly and scrutinised them diligently. Subsequently, the Parliament was supplied with ample information about the implementation status of the suggestions. At the same time, the annual reports have been accompanied by stand-alone progress reports regarding MPs’ suggestions about overhauls and construction of social and infrastructure facilities and about also improvement of various services for two years on end.

Sahiba Gafarova summed up her introduction by saying that she was certain: today, too, the MPs were going to be most active in the deliberations due to begin and would put forth rational proposals.

Next, Prime Minister of the Azerbaijan Republic Ali Asadov proceeded with the 2021 Government Performance Report proper.

The practice of governmental reporting to the legislative assembly is a received constitutional norm; this experience enhances the fruitful and business-like interaction between the two and, at the same time, provides for joint analyses of the Government’s work and adjustment of tasks for the future, according to PM Asadov.

Similarly to the preceding years, in 2021, too, the determined policy that was carried into life under the guidance of President and the victorious Commander-in-Chief of Azerbaijan Ilham Aliyev ensured preservation and continuation of the national socio-economic growth dynamics. Building a competitive national economy, accelerating steady economic growth, making certain that every citizen benefits from the progress and taking the population back to the de-occupied lands were the tasks lined up subject to the presidential decree of 2 February 2021 approving the ‘Azerbaijan 2030: the National Socio-Economic Development Priorities’ document. The Cabinet of Ministers had formed ten working sub-groups encompassing 5 National Priorities pursuant to that decree and in order that a socio-economic development programme would be put together for the years 2022-2026.

Maintaining the macro-economic balance was the chief priority in 2021. The timely steps, the vaccination gathering momentum and the gradual mitigation of the social isolation restraints restarted economic activity despite the new pandemic wave. The GDP and industrial outputs rose by 5.6% and 5.2% respectively, including the corresponding increases by 7.2%, 18.9% and 3.4% in the non-oil sector, in the non-oil industries and in the agriculture.

The foreign trade turnover approached US$35.6 bn with the balance surplus at US$12.1 bn in 2021. The period’s tax and customs collections were AZN 1.7 bn more than planned; those funds are being spent on the socially oriented spending items of the 2022 State Budget now. The strategic currency reserves overlapped US$ 53.0 bn and were seven times the plain national foreign debt, which, by the way, equalled US$ 7.4 bn at the y/e 2021. The State Budget incomes amounted to AZN 26.4 bn as against the projected AZN 25.4 bn.

Fundamental steps were taken during the report year to improve financial administration and state debt management, maintain transparency and accountability and, lastly, expand the involvement of the public and civic institutions in the budgeting processes.

The COVID-19 pandemic and the steep drop in global oil prices experienced in 2020 had called for extra spending and a countercyclical fiscal policy to be set in motion, which, in turn, gave rise to the fiscal rule suspension – that was the case in Azerbaijan as much as it was in many other countries, though. The fiscal rule was applied again starting on 1 January 2022.

The global climb of foodstuff prices that persisted all last year was the cause of stronger inflation pressures in most countries including our principal trade partners. The latest commodities markets data of the World Bank indicate that energy prices rose by 77.0% in comparison with 2020 whereas non-energy prices went more than 20% up last year, again, compared with 2020. According to the UN FAO, world foodstuff prices climbed by more than 23% and reached the highest point of the past decade.

The report by the Cabinet of Minister shows a considerable ramp-up in external inflation factors in 2021; there was a great impact from external food inflation. It is no coincidence that the average annual inflation was 6.7% compared with 2020 and that of 12 months made 12%. The food inflation accounted for 60% of the aggregate. The balance of payments surplus and the macro-fiscal structure in use ensured the currency parity was stable and the latter, in turn, had an arresting influence on imported inflation and inflation expectations. The anti-inflation acquires the increasing pertinence and is nowadays one of the crucial applications of the economic policy of the Government. The anti-inflation arrangements are called upon to minimise the inflation effects on business activities and public well-being.

According to the Government’s report, agrarian producers were issued with AZN 455 mn of financial support and resources to fund food security last year; the allocation was made from the state funds. That money represented an increase by 135 from the counterpart recorded in 2020. Also, 59% of the soft loans coming out of the Business Development Fund were placed nowhere else but in the agrarian industry in 2021.

Several tremendous decisions were made last year to raise the social payments, including retirement pensions, allowances and welfare sums, in order to strengthen the social protection of the population in general and of the vulnerable sections of the community in particular.

The further salary increases have taken place since the beginning of 2022 in the format of the social package carried out as instructed by President Ilham Aliyev. The minimum monthly salary notched up from AZN 250 to AZN 300 has caused the average 20% increase in the wages of 800,000 employed citizens – including those whose rewarding is determined by the Unified Tariff Schedule. The additional allocation released from the 2022 State Budget towards the minimum salary increase equalled AZN 460 mn. On the whole, the social package in its part concerning the intended rises in salaries, pensions and other social payments will encompass as many as 3.4 mn people in 2022. The additional annual allocation in the amount of AZN 2.1 bn is earmarked to this end.

PM Asadov told the House that those handicapped whilst protecting the territorial integrity and independence of the Azerbaijan Republic, the shahid families and the other socially vulnerable households had been given more than 3,000 flats to live in during 2021. As much as AZN 354 mn was released from the State Budget to cover the refugee/IDP social protection costs last year, besides. The insurance premiums paid to members of the families of the Patriotic War’s fallen as well as to the servicemen either wounded or handicapped exceeded AZN 55 mn in total. At the same time, the Government continued enhancing the defence and military potential of the country throughout the year; new armaments were purchased; the logistical base of the Armed Forces was reinforced, too.

The relevant presidential decrees had AZN 212 mn allocated from the State Budget’s investment spending segment and AZN 122 mn taken from the Presidential Reserve Fund to pay for the socio-economic development of the provinces of the country in 2021. Also to the decrees of the Head of State, the Government signed off the new division of the economic regions of the country, the number of which had reached 14 and had included the newly-made economic regions of Garabagh and East Zangazur. The funds allocated from the State Budget towards the costs of restoring and rebuilding the de-occupied territories of the country had amounted to AZN 2.2 bn last year; it could be said that that amount had been expended entirely, PM Asadov told the House.

The international airport of Fuzuli and the Victory Road, both commissioned last year, the international airports of Zanghilan and Lachin, under construction currently, and the other essential motoring, railway and social infrastructural projects afoot are having a material benevolent influence on the progress of that part of the country. Substantial steps were made and are being made now to create the Zangazur Corridor, which landed on the national agenda specifically upon the instance of the victorious Commander-in-Chief Ilham Aliyev. The Agdam Industrial Park and the ‘Araz Valley Economic Zone’ (an industrial park situated in the East Zangazur economic region) were established to the decrees of the Head of State.

Also, the urgent action goes on to rectify the damage dealt by the Armenian armed forces’ aggression to civil population, public property, infrastructural facilities and business enterprises. That work is being done in strict compliance with the relevant instructions of the president. More than AZN 124 mn has been spent on that in eleven provinces and towns already; the refurbishment and repairs of 12,824 residential and non-residential edifices – out of the total of 13,295 – are 96.5% complete right now.

Speaking of countering the coronavirus pandemic, PM Asadov continued, AZN 800 had been spent on the cause last year; also, AZN 433 mn had been set aside for vaccination of the population.

Next, Ali Asadov gave a succinct overview of the main tasks and defined goals of the Government for the current year; in addition, he told the House about the governmental priorities contained in the 2022-2026 Socio-Economic Development Strategy. Amongst those priorities are steady development, economic diversification and competitiveness enhancement; preservation of macro-economic and financial stability as well as of fiscal endurance; optimisation of expenditures and their economical application; acceleration of the on-going improvement of the business environment and structural modifications; reinforcement of the anti-monopoly policy inclusive of the supervision intended to discourage price manipulation attempts in the domestic market; prevention of world-market foodstuff price-rise’s adverse effects on domestic foodstuff supplies and food security maintenance; reinforcement of social protection – and other as important tasks to attend to.

The State Reserves Agency of the Azerbaijan Republic was established to the relevant presidential decree dated 7 October 2021 in order to keep the national supplies in the strategic goods steady, to avoid short-term abrupt fluctuations of such goods’ prices in the domestic market and to ensure the national food security.

The most pressing tasks that the Head of State set before the Government are the restoration and rebuilding work to be done in the de-occupied lands, restoration of their historical and cultural heritage and proper arrangements to be made for the returning population to live normally. The 270^th anniversary of Shusha is marked this year; the Cabinet of Ministers put together and sanctioned the action plan following the Head of State’s declaration of 2022 The Year of Shusha.

PM Asadov went further to talk about the impact on Azerbaijan of the latest developments in the region – in particular, of what is going on in Ukraine. PM Asadov referred to the topic of evacuation of our citizens working and living in that country, saying that all the concerned agencies were engaged as instructed by the president and the intensive evacuation and security provisions are in progress. As many as 9,246 people have been evacuated to date.

The other concerns posed by the events in Ukraine are transport & logistical issues, climbing prices and problems caused by imported goods and various restrictions and prohibitions. Still, agile preventive steps are being taken as instructed by President Ilham Aliyev to make sure that the State is capable of responding to all new challenges adequately, immediately and flexibly. As a result, the country has accumulated the staple foodstuff reserves and is busy organising importunate further deliveries of them.

The pressure that the neighbouring countries’ financial and banking systems are under did not have effect on Azerbaijan because Azerbaijan’s financial system is stable and the national currency is steady. Besides, the country possesses sufficient currency reserves.

Ali Asadov concluded his report by telling the House that the laws passed by the Milli Majlis formed the legal frameworks for socio-economic and institutional development and by emphasising the importance of streamlining legislative frameworks in line with the demands and challenges of the epoch. Also, PM Asadov said it was necessary to strengthen the government-parliamentary interaction in this area.

The next speaker was the chairman of the parliamentary Economic Policy, Industries and Enterprising Committee Tahir Mirkishili who said that the liberation of the previously-occupied Azerbaijani territories with the leadership of the president and victorious commander-in-chief Ilham Aliyev and the brilliant military, political and economic victory over Armenia won in 2020 had preconditioned, in general, the year 2021 having become a year of victories in all the areas as well as a year in which the restoration and rebuilding efforts had been started. At the same time, the national agenda was topped in 2021 by economic diversification, reduction of the dependence on crude oil, acceleration of economic growth coupled with making such growth steadier, improvement public well-being and keeping financial stability.

The report that the Prime Minister had tabled is all-encompassing in form and content and, at the same time, it addresses absolutely all the pertaining matters whilst also containing ample information that would be needed to assess the Government’s fulfilment of the tasks given it by the Head of State, in the opinion of Mr Mirkishili. Also, a lot of space is dedicated to carrying out the suggestions and recommendations coming from the members of the Milli Majlis, it was added.

Azerbaijan chiefly spent 2021 taking steps – and successfully, too – to attend to the following three areas: restoration of the de-occupied territories, elimination of the economic aftermath of the pandemic and countering the global shortage and appreciation of good products. The annual growths: of the GDP by 5.6%, of the non-oil sector by 7.2%, of non-oil industrial outputs by 18.9%, of agrarian production by 3.4% and of non-oil exports by 38.4% are worthy of attention and praise. So are the strategic currency reserves exceeding US$2.4 bn and the trade balance surplus of more than US$12.1 bn, also, the reduction of the plain national foreign debt by 8.7% down to 13.5% of the GDP, the financial stability and budget sustainability kept firmly in place, the actual budgetary revenues having overlapped the forecasts and, last but not least, the fact that the State Budget’s spending plans had been carried out by 96%, Mr Mirkishili continued.

More than 133,000 tax-payers were provided with financial support as part of the package of economic measures targeting the pandemic last year; that came as a handsome backing given to the business community. Then, there was an outturn from promotion of private investments, the use of a single-window system for attraction of investments and the role that the agents had played. The revenues article of the 2021 State Budget – including the local revenues forecast – had gratifyingly been performed with an increase above the prognostic bar, according to Mr Mirkishili. On the whole, he continued, the performance of the budgetary spending articles had reached 96.1% across all the functional classification points, which, too, was really rather acceptable. Mr Mirkishili also lauded the preserved stability of the implementation of the State Budget plans during 2021. Commending also the streamlining done on the financial budget system and the moves made to transition to a result-driven budgetary system, the committee chairman added that more could be done in that field yet.

Mr Mirkishili lauded as much the meaningful and rewarding interaction between the Milli Majlis and the Government in 2021; in particular, he referred to the work done jointly by the parliamentary Economic Policy, Industries and Enterprising Committee, on the one hand, and the economic ministries, on the other. The fruitful collaboration that went with the President’s Office, the Cabinet of Ministers and, especially, the ministries of finance and economy in the report year, covered legislation, economic and fiscal policies and budgetary projects, having produced material quality shifts in each of those areas. That was a task set forth in the speech of the Head of State before the Parliament on 10 March 2020.

Then spoke the chairmen of the Natural Resources, Energy and Ecology Committee Sadig Gurbanov, of the Labour and Social Policy Committee Musa Guliyev and of the Agrarian Policy Committee Tahir Rzayev. They made known the corresponding opinions of their respective committees; they praised the Government’s report as comprehensive, done to high standards and realistic in the included description of the operating areas of the Government. The committee chairmen stressed that though 2021 had been marked with economic complications on the global scale, still, it is clear from the governmental report that macro-economic stability as well as the national economic growth trends and tempo had been preserved in our country under the immediate governance of President Ilham Aliyev.

Creation of a modern electric energy industry infrastructure, implementation of technological innovations and energy security maintenance were amongst the successful efforts during 2021. Continued, that work made Azerbaijan the leading exporter of electricity in the region.

The committee leaders also praised the set of actions carried out in the discussed year to raise the average monthly salary, pensions, benefits and other social payments – as well as to keep the social welfare in place and provide the population with the due social protection.

As the deliberations continued, opinions were voiced also by the parliamentary committee chairs Ahliman Amiraslanov and Hijran Huseynova and the MPs Ilham Mammadov, Elnur Allahverdiyev, Mahir Abbaszade, Nigyar Arpadarai, Vugar Bayramov, Kamal Jafarov, Vahid Ahmadov and Azer Badamov.

*  *  *

The deliberations upon the 2021 report of the Cabinet of Ministers continued after the hiatus.

Amongst the commentators were a Milli Majlis committee chairman Zahid Oruj, the commission chairman Eldar Ibrahimov and the MPs Kamila Aliyeva, Sabina Hasayeva, Aghiya Nakhchivanli, Igbal Mammadov, Naghif Hamzayev, Sahib Aliyev, Fazil Mustafa, Ali Masimli, Tahir Karimli, Javid Osmanov, Shahin Ismayilov, Aydin Huseynov, Elman Nasirov, Musa Gasimli, Razi Nurullayev, Elshan Musayev, Sabir Rustamkhanli, Gudrat Hasanguliyev, Fazail Agamali and Sevil Mikayilova. They agreed that the Cabinet of Ministers had managed to carry out its whole practical agenda last year and had acted successfully in all the facets of the country’s life. The MPs commented favourably on the Government’s efforts to build a competitive economy, counter the coronavirus pandemic, apprehend post-war challenges, restore and revive the territories delivered from occupation and ensure economic, social and cultural development in Garabagh and East Zangazur. It was further said that the broader and more productive application of the compulsory medical insurance during 2021 had resulted in the coverage of all the fields and all the citizens with the ultimate rise in the citizens’ degree of satisfaction with that class.

Besides, the law-makers let the Government know of the problems concerning their electors. They talked about development of the provinces they represent and improvement of the provincial utilities and social infrastructures. The future of Azerbaijan was discussed as well.

PM Ali Asadov commented in response. Then, the annual report of the Government was put on vote and duly noted.

Chair of the Milli Majlis Sahiba Gafarova wished PM Ali Asadov and the Government further achievements in their work, congratulated the participants of the plenum on the year’s Last Wednesday and the approaching Novruz Bayram and suggested that congratulatory letters should be written and sent on behalf of the Parliament on the occasion to President Ilham Aliyev and First Vice President Mehriban Aliyeva.

‘Let us wish them big successes in their work for the present and future of the nation and the state!’ Sahiba Gafarova proposed.

That idea was met with applause.

And with that, the scheduled plenum of the 2022 spring session of the Milli Majlis was over.

The Press and Public Relations Department
The Milli Majlis