With the Decree of President Ilham Aliyev dated August 25, 2025, the requirement for state enterprises to contribute 30% of their net income to the budget comes into force. Control over the expenditures and revenues of enterprises, including their estimates, has been entrusted to the Ministry of Finance. Starting next year, state enterprises will provide disclosures in accordance with International Financial Reporting Standards. Additionally, reports from previous years must be submitted.
It should be noted that the Decree was signed in connection with the approval of the "Rules on the Distribution of Net Profit and General Parameters of Dividend Policy for Legal Entities Owned by the State and Whose Controlling Stake (Shares) Belongs to the State, and Public Legal Entities".
Provisions related to the approval of the Rules come into force on January 1, 2026.
Economist Emin Garibli spoke to Modern.az regarding the change.
He noted that many state enterprises receive subsidies:
“From its name, we see that the enterprise belongs to the state. Therefore, it should also benefit the state. The transfer of 30% of net income to the budget is an acceptable situation.
On the other hand, the number of state enterprises is increasing. Tax revenues from entrepreneurship are invested in these organizations. They, in turn, should also be optimized.
To date, we have not seen the reports of all state enterprises. Financial turnover should be disclosed to the media and the public in a timely manner. However, in our country, information is provided to the public only after the enterprise incurs significant losses.
At the same time, the creation of training centers and so on by institutions complicates the structure. There is no need for this. How will an enterprise without profit give 30% of its income? It would be more appropriate to transfer them to the private sector. That is, if there is an enterprise and it receives funding from the state, it must also meet the 30% requirement or be reformed.
The salaries assigned to enterprise managers should also be regulated. If the institution does not generate high income, it is not logical for its head to receive a high salary”.
The economist noted that the regulation of activities brings subsequent price increases close to zero:
“The state's demand for dividends from the aforementioned enterprises will increase accountability.
To ensure that citizens do not incur risks when purchasing shares, the entity must also guarantee this. Because individuals need to make investments.
I believe that the Decree will create financial revitalization in the macroeconomic environment. If the entity performs its function at a high level, it will be able to contribute the state's share, and at the same time, its income will attract additional investor interest.
If the monitoring group of the Ministry of Finance takes a place on the Supervisory Board, the guarantee of transparency will increase. You see that reports are submitted, but only the institution's top manager – the minister – sits on the Board. This is not a correct mechanism".
