Azerbaijan’s social spending is expected to grow next year, with the government preparing for new increases across several key welfare programs – including the monthly “veteran payment.”
According to Vugar Bayramov, a member of Parliament’s Committee on Economic Policy, Industry and Entrepreneurship, the 2026 state budget allocates 17.1 billion manats for social programs.
This figure accounts for over 41% of total budget expenditures, underscoring the government’s intention to expand support mechanisms.
Bayramov noted that all increases must be approved through legislation:
“Adjustments – whether to pensions, benefits, or social thresholds – are made strictly through law. Pension indexation, for example, is regulated by the Law on Labor Pensions.”
He added that proposals regarding the “veteran payment” are already under review. One of the options submitted to Parliament links the size of the benefit to real increases in living costs:
“One proposal suggests tying the ‘veteran payment’ to annual rises in utilities, transportation, and other essential expenses. Once these increases are calculated, the payment can be indexed accordingly – just like pensions.”
This mechanism, he explained, would also allow automatic annual indexation, ensuring benefits keep pace with inflation and cost-of-living changes.
Bayramov emphasized that such an approach would create a fairer model for veterans and other eligible groups, especially as costs continue to rise across key consumer categories.
