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 Report - Law on Grants of Azerbaijan Republic will be changed (NNF)

 Report date: 10.11.2002

Law on Grants of Azerbaijan Republic will be changed

While discussing the state budget for 2003 fiscal year at the Milli Mejlis, the draft proposing amendments to and changing of some legislature of Azerbaijan Republic had been discussed. The Paragraph 25 of the Draft proposed to make changes in the Article 5 of the Law on Grants of AR by adding the third paragraph to it which would read as following "As mentioned at the present law the money received as grants should be subject to the compulsory state social insurance and be regulated by the Law on State Insurance."

It is well known that at present the NGO Sector in Azerbaijan depends on allocated money in the from of grants. In case if the cost of the state insurance is added to the projects applying for grants, then these projects will be more expensive. For instance, if 50% of a project's budget is allocated for salaries then this project will be more expensive for about 15%. It may have double effect, from one hand it may evoke discontent of grant issuing entities resulting in the reduction of grants allocation into the country, from the other hand it may reduce the amount of salaries paid through the grants resulting in the reduction of the number of experts and professionals working in this sector. The overall result will be a serious blow to the work of the developing NGO sector which is directly dependent on the grants.

The National NGO Forum expresses its disturbance with the complicated situation for NGOs which may appear in case if the above mentioned amendments to the Law on Grants are adopted. It believes that the Milli Mejlis will turn the proposal down for the sake of the Third Sector development.

The press service of the NNF.

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