In 2025, significant portions of funds allocated from the state budget of Azerbaijan to various government institutions were retained in bank accounts rather than being fully utilized, according to a recent audit.
The Operative Information Center-OMM reports that these findings were detailed in the Audit Chamber’s opinion on the draft law regarding the "Execution of the 2025 State Budget." The document highlights that retaining budget funds in bank accounts has led to inconsistencies in budget accounting practices.
An analysis of selected institutions indicates that over 600 million manats—excluding classified sectors—remained in bank accounts despite being recorded as cash execution of the state budget. Of this amount, more than 400 million manats were reported as executed under capital expenditures for the reporting year. The Audit Chamber noted that while some institutions demonstrated movement in these balances, this was not a consistent trend across all government bodies.
"Reports on the execution of the state budget, as well as some amounts included in the annual report as cash execution, were identified by the institutions themselves as funds held in bank accounts. The data provided by these entities also included reasons for non-execution and projections for the funds to be utilized in 2026. This creates a discrepancy with the definition of 'cash execution of the state budget' under the Law on the Budget System," the Audit Chamber stated in its report.
The Audit Chamber of the Republic of Azerbaijan serves as the supreme audit institution, responsible for exercising external financial control over the state budget. Its primary mandate is to ensure the transparency, efficiency, and legality of public spending, providing the Milli Majlis (National Assembly) with independent assessments of how government funds are managed and executed annually.
