President Ilham Aliyev has approved amendments to the laws "On the Budget System," "On Accounting," and "On State Procurement," which were adopted by the Milli Majlis (National Assembly) on February 20. According to Operative Information Center-OMM, these legislative changes aim to enhance transparency and efficiency in public financial management by digitalizing processes related to the state budget, accounting, and public procurement.
The initiative follows a decree issued by the head of state on August 25, 2025, regarding additional measures for the efficient management of public finances. This decree mandated the creation of the "Digital Government Finance" information system. The system is designed to streamline the activities of the Ministry of Finance, covering budget management, taxation, customs, state duties, and dividends from state-owned entities. It also encompasses auditing, accounting of financial and non-financial assets, state treasury operations, and the management of public debt and financial obligations.
Under the new regulations, the exchange of financial documents between state bodies, budget-funded organizations, and state-owned legal entities will be conducted electronically. The "Digital Government Finance" system will facilitate the submission of data required for drafting the state and consolidated budgets, as well as the distribution of revenues and expenditures. This transition to electronic document circulation is expected to reduce administrative burdens, optimize the workload of relevant state agencies, and increase the flexibility of budget execution in Azerbaijan.
Furthermore, the amendments to the law "On State Procurement" ensure that procurement contracts between purchasing organizations and economic entities will be concluded electronically through the new information system. This includes the transmission of acceptance notices and the regulation of various procurement stages via the digital portal. The integration of these processes into a unified digital framework represents a significant step in Azerbaijan's ongoing efforts to modernize its public administration and ensure the effective use of state resources.
