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Akbar Novruz

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President Ilham Aliyev’s latest decree on the establishment of the “Digital Public Finance” information system signals a decisive step toward modernizing Azerbaijan’s financial management framework. The initiative aims not only to streamline budgetary processes but also to build a transparent ecosystem where state revenues and expenditures can be monitored in real time.

The system is designed to encompass a wide range of financial activities linked to the Ministry of Finance, including budget planning, tax and customs revenues, state duties, dividends from state-owned enterprises, audits, public debt, treasury operations, and financial liabilities. By mandating electronic exchanges of financial documents across ministries, state-owned companies, and public entities, the decree seeks to eliminate bureaucratic inefficiencies and reduce vulnerabilities to corruption.

Crucially, the move comes at a time when Azerbaijan’s reliance on hydrocarbon revenues is gradually declining, making fiscal discipline and efficient public spending more essential for sustainable growth. With the digital monitoring of dividends, state orders, and extra-budgetary funds, the decree represents a turning point in strengthening financial accountability in the post-oil era.

Economic expert Eldaniz Amirov provided his assessment of the decree in an interview with Azernews.

"At a time when oil revenues are declining, strengthening control over budget expenditures is extremely important. The reason is known to everyone.

In short, this mechanism, the main burden of which will fall on the Ministry of Finance, if implemented qualitatively, will be the main mechanism affecting the economy with a multiplier effect in the coming years.

Because this step aims to establish a control mechanism over embezzlement, inflated tenders, ineffective expenditures and non-transparent financial transactions that have existed for years. Now, budget revenues and expenditures, dividends of state-owned companies, extra-budgetary funds and projects implemented by state order will be monitored digitally. The introduction of electronic contracts, strengthening treasury control and expanding financial expertise will minimize the possibilities of manipulation.

Of course, no matter how important this decree is, its fate will be determined by the quality of its implementation. If this system is implemented with professional staff, strong technical infrastructure and continuous control, the financial system of our country can enter a completely new stage. Otherwise, there is a risk that expectations will not be met.

In any case, this is the first time we have seen a mechanism that allows for digital monitoring of financial discipline at this level. This is a promising start for the future."