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Azerbaijan

Which countries lead in budget accountability? Which ones need improvement? Explore our data and recommendations for each of the 120 countries assessed.
Open Budget Survey Results

Public Participation

9

Budget Oversight

63

Transparency

57

Open Budget Survey 2021

Government budget decisions – what taxes to levy, what services to provide, and how much debt to take on – have important consequences for all people in society. When governments provide information and meaningful channels for the public to engage in these decisions, we can better ensure public money is spent on public interests.

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The Open Budget Survey (OBS) is the world’s only independent, comparative and fact-based research instrument that uses internationally accepted criteria to assess public access to central government budget information; formal opportunities for the public to participate in the national budget process; and the role of budget oversight institutions, such as legislatures and national audit offices, in the budget process.

The survey helps local civil society assess and confer with their government on the reporting and use of public funds. This 8th edition of the OBS covers 120 countries.

Summary
Country Specific Assessments
Country summary EN
pdf, 317.72 KB
Questionnaire EN
pdf, 1.07 MB
57 /100

This part of the OBS measures public access to information on how the central government raises and spends public resources. It assesses the online availability, timeliness, and comprehensiveness of eight key budget documents using 109 equally weighted indicators and scores each country on a scale of 0 to 100. A transparency score of 61 or above indicates a country is likely publishing enough material to support informed public debate on the budget.

Transparency in Azerbaijan compared to others

Global Average
45
Georgia
87
Russia
73
Kazakhstan
63
Kyrgyz Republic
62
Mongolia
60
Azerbaijan
57
Türkiye
55
Tajikistan
16
0
Insufficient
61
Sufficient
100

Azerbaijan’s ranking: 44 of 120 countries

0
100

How has the transparency score for Azerbaijan changed over time?

43
2010
42
2012
51
2015
34
2017
35
2019
57
2021
0
Insufficient
61
Sufficient
100

Public availability of budget documents in Azerbaijan

Key
Available to the Public
Published Late, or Not Published Online, or Produced for Internal Use Only
Not Produced
Scroll
Document 2010 2012 2015 2017 2019 2021
Pre-Budget Statement
Executive’s Budget Proposal
Enacted Budget
Citizens Budget
In-Year Reports
Mid-Year Review
Year-End Report
Audit Report

How comprehensive is the content of the key budget documents that Azerbaijan makes available to the public?

Key
61-100 / 100
41-60 / 100
1-40 / 100
Scroll
Key budget document Document purpose and contents Fiscal year assessed Document content score
Pre-Budget Statement Discloses the broad parameters of fiscal policies in advance of the Executive's Budget Proposal; outlines the government's economic forecast, anticipated revenue, expenditures, and debt. 2021 78
Executive’s Budget Proposal Submitted by the executive to the legislature for approval; details the sources of revenue, the allocations to ministries, proposed policy changes, and other information important for understanding the country's fiscal situation. 2021 43
Enacted Budget The budget that has been approved by the legislature. 2021 78
Citizens Budget A simpler and less technical version of the government's Executive’s Budget Proposal or the Enacted Budget, designed to convey key information to the public. 2020 58
In-Year Reports Include information on actual revenues collected, actual expenditures made, and debt incurred at different intervals; issued quarterly or monthly. 2020 96
Mid-Year Review A comprehensive update on the implementation of the budget as of the middle of the fiscal year; includes a review of economic assumptions and an updated forecast of budget outcomes. 2020 63
Year-End Report Describes the situation of the government's accounts at the end of the fiscal year and, ideally, an evaluation of the progress made toward achieving the budget's policy goals. 2019 62
Audit Report Issued by the supreme audit institution, this document examines the soundness and completeness of the government's year-end accounts. 2019 62

Azerbaijan’s transparency score of 57 in the OBS 2021 is substantially higher than its score in 2019.

What changed in OBS 2021?

Azerbaijan has increased the availability of budget information by:

Publishing the Pre-Budget Statement and Mid-Year Review online.
Increasing the information provided in the In-Year Reports and Year-End Report.

Recommendations

Azerbaijan should prioritize the following actions to improve budget transparency:

Include in the Executive's Budget Proposal multi-year expenditure and revenue estimates, as well as more information on the fiscal position of the government, including future liabilities, the stock of nonfinancial assets, quasi-fiscal activities, and tax expenditures.
Continue to produce and institutionalize the publication of the Mid-Year Review. While it is currently published as part of the supplementary budget package, going forward it can be a standalone piece, to be published irrespective of whether a supplementary budget is issued or not.
Strengthen the processes around the inclusiveness and coverage of the Citizens Budget, by consulting more widely with the public on the budget information they would like to be featured in the document, and by publishing simplified versions of budget documents during all phases of the budget process.
9 /100

The OBS assesses the formal opportunities offered to the public for meaningful participation in the different stages of the budget process. It examines the practices of the central government’s executive, the legislature, and the supreme audit institution (SAI) using 18 equally weighted indicators, aligned with the Global Initiative for Fiscal Transparency’s Principles of Public Participation in Fiscal Policies , and scores each country on a scale from 0 to 100.

Azerbaijan has a public participation score of 9 (out of 100).

Public participation in Azerbaijan compared to others

Global Average
14
Georgia
44
Russia
28
Kyrgyz Republic
26
Mongolia
13
Azerbaijan
9
Kazakhstan
9
Tajikistan
0
Türkiye
0
0
Insufficient
61
Sufficient
100

For more information, see here  for innovative public participation practices around the world.

Extent of opportunities for public participation in the budget process

0
/100
Formulation
(executive)
0
/100
Approval
(legislature)
0
/100
Implementation
(executive)
44
/100
Audit
(supreme audit institution)
Key
0-40: Few
41-60: Limited
61-100: Adequate

Recommendations

To further strengthen public participation in the budget process, Azerbaijan's Ministry of Finance should prioritize the following actions:

Pilot mechanisms to engage the public during budget formulation and to monitor budget implementation.
Actively engage with vulnerable and underrepresented communities, directly or through civil society organizations representing them.

Azerbaijan's Parliament (Milli Məclis) should prioritize the following actions:

Allow members of the public or civil society organizations to testify during its hearings on the budget proposal prior to its approval.
Allow members of the public or civil society organizations to testify during its hearings on the Audit Report.

Azerbaijan's Chamber of Accounts has established mechanisms for the public to assist in developing its audit program. It should prioritize the following actions to improve public participation in the budget process:

Establish formal mechanisms for the public to contribute to relevant audit investigations.
63 /100

The OBS examines the role that legislatures and supreme audit institutions (SAIs) play in the budget process and the extent to which they provide oversight; each country is scored on a scale from 0 to 100 based on 18 equally weighted indicators. In addition, the survey collects supplementary information on independent fiscal institutions (see Box).

The legislature and supreme audit institution in Azerbaijan, together, provide adequate oversight during the budget process, with a composite oversight score of 63 (out of 100). Taken individually, the extent of each institution’s oversight is shown below:

Legislative oversight

0
50
100
limited

Audit oversight

0
89
100
adequate
Key
0-40: Few
41-60: Limited
61-100: Adequate

Recommendations

Azerbaijan's Parliament (Milli Məclis) provides limited oversight during the planning stage of the budget cycle and limited oversight during the implementation stage. To improve oversight, the following actions should be prioritized:

The Executive’s Budget Proposal should be submitted to legislators at least two months before the start of the budget year, to give Parliament and its committees sufficient time to examine it and publish reports with their analysis online.
A legislative committee should regularly examine in-year budget reports as well as the Audit Report, and publish their findings online.
In practice, ensure the legislature is consulted before the executive shifts funds specified in the Enacted Budget between administrative units during the budget year.

To strengthen independence and improve audit oversight by the Azerbaijan Chamber of Accounts, the following actions are recommended:

Ensure audit processes are reviewed by an independent agency.

The emerging practice of establishing independent fiscal institutions

Azerbaijan does not have an independent fiscal institution (IFI). IFIs are increasingly recognized as valuable independent and nonpartisan information providers to the Executive and/or Parliament during the budget process.

*These indicators are *not* scored in the Open Budget Survey.

Methodology

  • Only documents published and events, activities, or developments that took place through 31 December 2020 were assessed in the OBS 2021.
     
  • The survey is based on a questionnaire completed in each country by an independent budget expert:
    Dr. Ingilab Ahmadov
    Consultant, Eurasia Extractive Industries Knowledge Hub
    41, Mehseti str., AZ1096, Baku, Azerbaijan
    [email protected]
  • To further strengthen the research, each country’s draft questionnaire is also reviewed by an anonymous independent expert, and in Azerbaijan by a representative of the Ministry of Finance.
Past reports
Years
Language
Country summary EN
PDF, en
Questionnaire EN
PDF, en
Country summary RU
PDF, ru
Country summary EN
PDF, en
Questionnaire EN
PDF, en
Country summary RU
PDF, ru
Country summary EN
PDF, EN
Questionnaire EN
PDF, EN
Country summary RU
PDF, RU
Questionnaire EN
PDF, EN
Country summary EN
PDF, EN
Country summary RU
PDF, RU
Country summary RU
PDF, RU
Country summary EN
PDF, EN
Letter From Republic Of Azerbaijan Ministry Of Finance
PDF, EN
Questionnaire EN
PDF, EN
Response from NBG
PDF, EN
Letter from IBP to MoF
PDF, EN
Country summary RU
PDF, RU
Questionnaire EN
PDF, EN
Country summary EN
PDF, EN
Country summary EN
PDF, EN
Questionnaire EN
PDF, EN
Country summary RU
PDF, RU
Country summary EN
PDF, EN
Questionnaire EN
PDF, EN
Country summary RU
PDF, RU