In Azerbaijan, with the aim of increasing transparency and efficiency in public finance management, the digitalization of processes related to budget, accounting, and public procurement is envisaged.
Modern.az reports that the issue is reflected in the draft laws on amendments to the laws "On the Budget System", "On Accounting", and "On Public Procurement", which were discussed at today's plenary session of the Milli Majlis.
It was stated that in the President's decree dated August 25, 2025, "On additional measures related to the organization of efficient public finance management", the creation of the "Digital Public Finance" information system was determined for the purpose of efficient management of areas related to the activities of the Ministry of Finance, including budget, tax, customs, state fees, dividends and other budget revenues for legal entities owned by the state and whose controlling stake (shares) belongs to the state, and public legal entities established on behalf of the state, as well as audit, accounting (including accounting of state financial and non-financial assets), state financial control, state treasury, state debt areas, and financial obligations.
With the same Decree, instructions were defined regarding ensuring the electronic exchange of financial documents of state bodies (institutions), legal entities owned by the state and whose controlling stake (shares) belongs to the state receiving financial resources from the state budget, public legal entities established on behalf of the state, and other organizations, as well as ensuring the procurement of goods, works, and services at the expense of state funds based on electronic contracts and organizing the conclusion of these contracts electronically.
Arising from the above, a relevant draft law has been prepared. Thus, according to the proposed amendment to the law "On the Budget System", the submission of information necessary for the preparation of state budget and consolidated budget indicators by budget organizations to the relevant state p within the periods defined by that law, as well as the submission of state budget indicators, revenue and expenditure distribution, and other information by that p to budget organizations, will be carried out through the "Digital Public Finance" information system. The digitalization of document circulation within the budget process will serve to reduce administration in the said area, optimize the workload of the relevant state p, and increase the flexibility of the budget preparation and execution process.
Since the "Digital Public Finance" information system also covers activities in the field of accounting (including the accounting of state financial and non-financial assets), a corresponding amendment to the law "On Accounting" is proposed, and the phrase "e-accounting" information system is replaced with the phrase "information system of the p (institution) determined by the relevant executive authority".
Currently, if the placement of software ensuring the conduct of accounting in the "e-accounting" information system is envisaged, according to the proposed draft law, the functionality of the information system will be increased, ensuring that accounting, as well as the preparation and submission of financial statements (consolidated financial statements), will be carried out within the "Digital Public Finance" information system itself.
According to the proposed amendment to the law "On Public Procurement", the conclusion of procurement contracts between the procuring organization and economic entities as a result of the procurement procedure (contracts related to procurements to which the law "On Public Procurement" applies, as well as contracts for the procurement of goods, works, and services specified in Articles 3.2.1, 3.2.4, 3.2.8, 3.4, and 3.8 of the same Law) electronically through the "Digital Public Finance" information system, as well as the regulation of a number of issues related to this process (sending acceptance notifications, determining deadlines, transferring required information to the information system's portal, etc.) will be ensured.
The draft was put to a vote and adopted in its third reading.
