Azerbaijani economists presented arguments for the return of "child money".

The adoption of the budget execution report by the Milli Majlis has returned the issue of child payments to Azerbaijan's agenda. Analysts pointed out that savings on social assistance will lead to a severe demographic crisis for the country. However, the authorities defend the current targeted system, calling it effective.

Azerbaijani women expressed support for the introduction of "child money"

Support for the introduction of child benefits was voiced by Aygun Gumbatova – the wife of oppositionist Agil Gumbatov, who is serving a prison sentence. "We are in a difficult financial situation. My husband was arrested on false charges. He was the only breadwinner in the family. Now, I am left with three school-aged children," Gumbatova told a correspondent from the "Caucasian Knot".

Her eldest child suffers from autism and requires constant care, which prevents Gumbatova from working. The only stable income in the family is her child's second group disability pension of 320 manats (about 180 dollars). "I have repeatedly applied for targeted social assistance. But our family is denied on the grounds that we have a motorcycle with a trailer. But my husband used it for earning money by taking out garbage from private houses... On some days, I can't even buy bread; I make lavash from black flour. Sometimes, my husband's comrades help us financially, but they also have financial difficulties. Earlier, believers provided assistance. But they have also stopped: they say that people who delivered aid have been arrested for supporting the families of political prisoners," Aygun Gumbatova said.

A mother of a minor child Sevil Mamedova also complained about the lack of money. "Our son is 4 years old. I work as a cleaner in a kindergarten, and my husband is a physical education teacher at school. Our salaries are low. We are denied targeted social assistance on the grounds that we have a land plot in the area, but it is not suitable for agriculture," she told a correspondent from the "Caucasian Knot".

She noted that if her family received at least 100 manats in child benefits per month, this amount would partially cover the expenses for raising the child. "I would enroll him in a self-development circle, I could buy him construction games. Time flies quickly; soon I will need to prepare him for school, and expenses will only increase," Mamedova noted.

The father of two schoolchildren Mursal Balaev also complained about financial difficulties.

"I am a specialist with a higher economic education, I worked in a commercial bank, but I was laid off, and now for two years I have been driving passengers with Uber. My wife has a pedagogical education but also cannot find a job. We have two children who study in school. Just for preparing for the new school year at the end of each summer – for buying uniforms, backpacks, and other children's supplies, I spend about 400 manats (240 dollars). But there are many expenses throughout the year – at school, they periodically collect money for classroom repairs, for Teacher's Day, for teachers' and classmates' birthdays. I am not even talking about current expenses for food and clothing. Because I have my own car, I cannot apply for targeted social assistance," he told a correspondent from the "Caucasian Knot".

The opposition pointed out the deterioration of residents' purchasing power

The parliament discussed the execution of the state budget for 2025 for almost a month; unfortunately, analysts did not hear any proposals from the deputies regarding the restoration of "child money", that is, a universal monthly child allowance for every citizen of the country under 18 years of age, noted the deputy chairman of the opposition party Popular Front of Azerbaijan and a member of the coordination center of the National Council of Democratic Forces (NCDF) Seimur Khazi.

"Instead of discussing this pressing public issue, some deputies spoke in the media in an inappropriate manner, distorting the essence of the proposal to restore "child money". Some even went so far as to say that supposedly the payment of "child money" could cause laziness in men, and they would stop working," he told a correspondent from the "Caucasian Knot".

Seimur Khazi noted that the PFPA and NCDF raised the issue of restoring "child money" back in 2019. "The authorities stated that the standard of living in the country is rising and there is no need for child benefits, salaries are increasing, pensions are increasing. However, despite the influx of excess revenues from oil sales, the social situation of the population has hardly improved," he explained.

After two devaluations in 2015, the situation worsened. Therefore, the PFPA and NCDF raised the issue of returning "child money". During the pandemic, the situation worsened even more against the backdrop of declining oil production and corruption, he continued. "Our demand is based on the Constitution of Azerbaijan, which proclaims the country as a social state. The foundation of a social state is caring for citizens, including children, who are the future of the country," Khazi said.

The Azerbaijani authorities allocate very little funds for the social protection of children, he emphasized. "In the state budget for 2025, various benefits related to children – one-time benefits for the birth of a child, benefits for children of military personnel on active duty, benefits for the loss of the breadwinner of the family, etc. – were classified under the general item "social protection". And 474.5 million manats (about 279.1 million dollars) were allocated from the budget for it. This is just over 1 percent of the total state budget expenditures. But it should be noted that other social benefits were also financed under this item, so the allocated social assistance to children turned out to be significantly less than 1 percent," Khazi said.

In his opinion, the state should allocate a universal allowance of half the average monthly salary for each child in the family. "After all, the issue is not only that children should be fed. In modern society, children have many other pressing needs. They should have opportunities for comprehensive development from a young age, attend various circles, and engage in sports. All of this is now paid. Children should have the opportunity to regularly visit cinemas and entertainment centers. A single visit to an entertainment center costs 50 manats (30 dollars) per child. A social state must ensure a decent childhood for everyone. Only in this case can we raise worthy citizens, well-rounded individuals who will ensure a secure future for the country," Khazi said.

Economists called for strengthening social protection for children

The head of the political committee of the opposition party "Republican Alternative", economist Natiq Jafarli, also considers it necessary to strengthen the social protection of children by the state. He pointed out the lack of accurate data on the funds allocated from the state budget for the social protection of children.

"The fact is that, in addition to financing benefits for various categories of children, funds are allocated under separate general directions that also cover children. For example, there is a disability benefit, and it is provided not only to adults but also to children. I would approach the issue differently: there are about 2.5 million people aged 0-18 in the country, and only 350-450 thousand of them are covered by various social protection measures," Jafarli told a correspondent from the "Caucasian Knot".

The state should increase social assistance to children and expand the base of its beneficiaries, he believes. "As a first step, our party proposes to establish a monthly allowance of 100 manats (about 58 dollars) for the second child in the family. This would require an additional 900 million manats from the state budget. In principle, the state is quite capable of handling this amount," Jafarli continued.

In the future, similar measures can be applied to large families. "Currently, in large families, a benefit of 140 manats (about 82 dollars) is assigned for each child after the fifth. This benefit could be allocated, for example, not after the 5th child, but after the 4th child," Jafarli noted.

According to Jafarli, the deteriorating demographics of Azerbaijan and declining birth rates also push for increased care for children. "Young families face housing problems. This hinders young people from starting families. Therefore, our party proposes a preferential social mortgage at 4 percent per annum," Jafarli said.

The head of the Center for Liberal Economists Aki̇f Nasirli commented on the decline in birth rates in Azerbaijan over the past 15 years based on official statistical data, calling the negative trend alarming.

According to him, if in 2011, 176 thousand children were born, then in 2024 this figure decreased to 102 thousand, and in 2025 – to 95 thousand. "This is the lowest figure in the years of independence. For comparison, in 1991, 190 thousand children were born. That is, over thirty years, the number of births has almost halved," Nasirli told a correspondent from the "Caucasian Knot".

Several reasons stand behind this decline, he believes. "Young people are starting families later, housing problems, urban life increasingly complicates the model of a large family. Moreover, the generation that is giving birth to children today is those who were born in the late 1990s and early 2000s. And during that period, the birth rate was also low, so the potential of mothers is lower. All of this overlaps and exacerbates the situation," the analyst noted.

According to his estimates, in Baku, monthly expenses for one child start at about 300-400 manats (180-140 dollars). "With an average salary of about 1,000 manats (about 580 dollars), the decision to have a second or third child requires serious courage. In such conditions, many families limit themselves to one child," Nasirli noted.

The state budget cannot bear the expenses for benefits for all 2.5 million children aged 0-18, he believes. "If we pay 150 manats (about 90 dollars) per child per month, it will amount to 4.68 billion manats a year. This is about 10% of the budget, and such an amount is unlikely to be manageable for the treasury. However, we can extend the universal benefit system to children up to 3 years old, which would significantly reduce the burden on the state budget. If about 95 thousand children are born each year, then paying them 150 manats per month until they are 3 years old would cover about 285 thousand children, and annual expenses would amount to about 513 million manats – that is, just over 1% of the budget, which corresponds to the capabilities of the state," the analyst said.

The cost of a demographic crisis in the long term will be significantly higher than the cost of child benefits, he noted. "If decisions are not made today, tomorrow the country may face more serious problems. If the current trend continues, in 15 years there will be a shortage of students in schools, and teachers will be left without jobs, and in 20 years the country will face serious problems with labor resources, replenishing the ranks for the army," Nasirli explained.

The Ministry of Labor of Azerbaijan reported on social assistance for children

Source in the Ministry of Labor and Social Protection of Azerbaijan provided the correspondent of the "Caucasian Knot" with information about the types of social assistance for children. In particular, the state pays a one-time allowance for the birth of a child in the amount of 600 manats (353 dollars). If a child is born in a low-income family, until the child reaches 1 year, 140 manats (about 82 dollars) is paid monthly for each child. Low-income families with a child under 1 year receive 140 manats for each child. The same amount is paid monthly to children under 18 years of age due to the loss of the breadwinner. The allowance for guardians (custodians) of children who have lost their parents and are deprived of parental care is also 140 manats.

Children of military personnel on active duty receive 140 manats monthly. In large families, women with more than 5 children receive 140 manats per month for each additional child. Adopted children receive 240 manats (about 141 dollars) monthly until they reach 18 years, and if the child has a disability, then 600 manats.

In foster families, depending on age, children receive monthly allowances: up to 6 years 500 manats (294 dollars), from 7 to 13 years 600 manats (352 dollars), from 14 to 18 years 650 manats (382 dollars).

The one-time allowance paid to children who have lost their parents and are deprived of parental care upon their first employment is 6,000 manats (about 3,529 dollars).

Needy families, including those with minor children, can count on targeted social assistance, noted a Ministry of Labor employee. "The amount of this assistance can vary for each family because it is not a fixed allowance. It is about supplementing amounts to ensure that each family member is provided with a subsistence minimum, which the state establishes at the beginning of each year," he explained.

As of June 1, more than 76 thousand low-income families in Azerbaijan receive targeted state social assistance, averaging 380-400 manats (223-235 dollars) for each family, noted a Ministry of Labor employee.

The unified monthly child allowance in independent Azerbaijan was first introduced in the fall of 1992, noted analyst of the Turan Analytical Service Tapdyg Farhadoglu.

"At that time, there was no stable amount of the allowance. In conditions of hyperinflation and the transition from Soviet rubles to the national currency, the amount changed periodically. By the time the universal monthly child allowance was abolished in 2006, its amount was 9,000 old manats, or 1.80 new denominated manats. By that time, this was equivalent to about 2 US dollars. This amount no longer had significant meaning, as the standard of living of the population had significantly increased. However, in the early and mid-1990s, child benefits were at least some support for family budgets," the analyst told a correspondent from the "Caucasian Knot".

Twenty years ago, the authorities explained the refusal of "child money" by the transition to a targeted social assistance system. "It was assumed that budget funds would be directed exclusively to low-income families, rather than distributed among all parents regardless of their income. Today, there is no universal monthly allowance for each child in Azerbaijan. At the same time, the state maintains a number of other support measures for families. However, in recent years, prices for food, services, utility payments, and housing rent have noticeably increased. For young parents, the expenses for preschool education, medical treatment for children, and purchasing their own housing are becoming increasingly burdensome. Against this backdrop, proposals and demands for the return of "child money" have emerged in society and social networks," Farhadoglu noted.

On the other hand, he continued, the decline in birth rates in Azerbaijan is also an argument in favor of restoring "child money".

"Of course, the issue of increasing birth rates cannot be solved solely by introducing a universal child allowance. The state can at best pay 100-200 manats (58-116 dollars) for each child, which is a quarter or half of the minimum wage. However, regular financial support from the state can partially reduce parents' expenses and create a sense of social security. We must also consider psychological aspects. During the pandemic, when everything came to a standstill, the state several times paid low-income families 190 manats (about 111 dollars). These amounts did not have a decisive impact on family budgets, but many were satisfied that they were still cared for, and this somewhat alleviated the social tension from the restrictions of the quarantine regime," the analyst noted.