What changes in the spending of budget funds?
The procedure for imposing fines for the misuse of state budget funds is being revised in Azerbaijan. The Milli Majlis (National Assembly) has adopted a new bill in its first reading to strengthen accountability regarding the management of public finances.
Operative Information Center-OMM reports that the proposed amendments to the Criminal Code were brought to the floor during today's plenary session of the parliament. The legislation aims to enhance financial discipline and ensure the transparent utilization of national resources.
According to the project, the scope of the crime involving the non-targeted use of state budget, targeted budget funds, or extra-budgetary state funds is being expanded. The new regulations will now also apply to the funds of state-owned legal entities, bringing them under the same legal scrutiny as direct government departments.
How fines will be calculated: New rules
Under the current sanctions, fines were set within a specific range of 9,000 to 13,000 manats. However, the new proposal stipulates that fines will be determined at "one hundred percent of the value of the subject of the crime" (the amount used for non-intended purposes). This change directly links the financial penalty to the scale of the damage caused to the state.
Furthermore, for acts committed involving large sums, a new alternative punishment of restriction of liberty for up to 3 years has been added to the code. The document also specifies that individuals committing such acts for the first time will be released from criminal liability if they fully compensate for the damage caused.
Defining "state-owned legal entities"
It should be noted that "state-owned legal entities" refer to commercial legal entities where 51 percent or more of the shares are owned directly or indirectly by the state, as well as non-commercial and public legal entities established by the state. This category also includes subsidiary business companies and entities where these state organizations hold a 51 percent or higher stake.
This legislative move is part of Azerbaijan's broader strategy to combat corruption and improve the efficiency of the public sector. By aligning penalties with the actual financial impact of misappropriation, the government seeks to create a stronger deterrent against the misuse of public wealth. After extensive discussions, the bill was put to a vote and passed in its first reading.
