Government-by-Government Assessments: Azerbaijan

During the review period, the executive budget proposal, enacted budget, and end-of-year report were publicly available, including online, and generally reliable.  They provided a substantially complete picture of the government’s revenues.  Budget documents lacked detail on allocations to and earnings from state-owned enterprises, although more detailed information was available through other public documents.  Information on debt obligations, including major state-owned enterprise debt, was publicly available and updated within a reasonable period.  The supreme audit institution met international standards of independence and audited the government’s entire annual executed budget, and its reports were publicly available within a reasonable period.  The government partially specified in law or regulation the criteria and procedures for awarding natural resource extraction contracts and licenses.  It is unclear if it followed those procedures in practice.  Basic information on such awards was made publicly available after contracts were awarded.  The sovereign wealth fund had a sound legal framework and disclosed its source of funding and general approach to withdrawals.

Azerbaijan’s fiscal transparency would be improved by:

• Detailing in budget documents allocations to and earnings from major state-owned enterprises; 
• Specifying fully in law or regulation the criteria and procedures for awarding natural resource extraction contracts; and
• Following natural resource extraction laws and regulations in practice.