Minister of Finance of the Republic of Azerbaijan Samir Sharifov made a business visit to the Islamic Republic of Pakistan, the United Arab Emirates (UAE) and India on February 19-21***As of January 1st, 2018, the external public debt of the Republic of Azerbaijan constituted 9,398.3 million US dollars (equivalent 15,978.1 million manat). The Debt to the Gross Domestic Product ratio stands at 22.8 percent (based on 2017 GDP of AZN 70,135.1 mln)******


Decree of the President of Azerbaijan Republic on approval of Statute of the Ministry of Finance

In order to adjust the activity of the Ministry of Finance of Azerbaijan Republic to the demands of market economy and in order to perfect the system of state financing management I hereby order:

     1. The Statute of the Ministry of Finance of Azerbaijan Republic to be approved (attached).
     2. To task the Cabinet of Ministers of Azerbaijan Republic to handle all outcomes of this decree.
     3. The decree of the president of Azerbaijan Republic no: 525 dated December 19 1996 "On approval of the Statute of the Ministry of Finance of Azerbaijan Republic" to be considered out of force

President of Azerbaijan Republic
Heydar Aliyev
Baku city, February 4th, 2000.
No: 271
Features amendments and changes set forth in decree no: 980 dated October 23rd 2003. ("VneshExpertService")
Approved by the decree no: 271 dated February 4th 2000 of the President of Azerbaijan Republic

Statute of the Ministry of Finance of Azerbaijan Republic

1. General terms

    1.1. The Ministry of Finance of Azerbaijan  Republic (hereinafter – the Ministry) is the central executive authority organ carrying out state financial policy and organizing the management of state financing.
    1.2. The Ministry of Finance of Azerbaijan Republic, the State Head Treasury and State Chamber of Standards at the Ministry, Financial-economic Ministry of Nakhichevan Autonomous Republic, city and district finance entities of Azerbaijan Republic form the system of state financial management of Azerbaijan Republic.
    1.3. As per the duties set forth in this Statute, the Ministry correlates and leads the activity of Financial-economic Ministry of Nakhichevan Autonomous Republic and city and district finance entities and branches of Azerbaijan Republic.
    1.4. The Ministry conforms to the Constitution of Azerbaijan Republic, decrees and orders of the President of Azerbaijan Republic, orders and resolutions of the Cabinet of Ministers of Azerbaijan Republic, as well as international agreement signed by Azerbaijan Republic and this Statute in its activity.
    1.5. The Ministry is a legal entity, which has its independent balance, treasury, foreign currency, special and other accounts in the banks, a stamp bearing Azerbaijan National Sign and its name, relevant other stamps and corporate letterheads.
    1.6. The Ministry is financed from the state budget and other sources of revenue not contradicting with active legislation.

2. The duties of the Ministry

The duties of the Ministry are as follows:
    2.1. Preparation of recommendations on directions of united finance, budget, and taxes policy of the government and execution of this policy;
    2.2. Preparation and organization of the state budget project;
    2.3. Provision of stability of state financing, implementation of necessary actions for development of financial market;
    2.4. Attraction of external credit to the economy of Azerbaijan Republic, preparation of recommendations on carrying out the accounting of their spending, movement, and payments;
    2.5. Perfection of budgetary system, budget-taxes prognosis, financing mechanisms, and accounting and reporting regulations;
    2.6. Financial control on spending of budgetary funds, as well as targeted budget funds, funds of budgetary entities outside the budget, including internal and external loans taken with governmental warranty;
    2.7. Provide fruitfulness state budget management and its allocation;
    2.8. Implementation of standards supervision on the territory of Azerbaijan Republic.

3. Functions of the Ministry

The Ministry, as per the duties set forth in this Statute, conducts the following functions:
    3.1. Prepares recommendations aimed at budget revenues based on the social-economic situation of the country;
    3.2. Participates in preparation of macroeconomic prognoses, and recommendations on creations of targeted budgetary funds and their use;
    3.3. Prepares the state budget project as per the relevant legislation and presents to the Cabinet of Ministers of Azerbaijan Republic, gives recommendations on organization and implementation of the state budget;
    3.4. Conducts operation on the Head State Treasury accounts and organizes their accounting;
    3.5. Defines quarterly allocation of approved revenues and expenditures for the next year’s state budget and reports it to the entities financed from the state budget;
    3.6. Guarantees implementation of state budget as well as budget revenue funds as per defined regulations;
    3.7. Prepares recommendations on precision of state budget as per the budgetary legislation;
    3.8. Carries out ongoing control on implementation of the state budget, targeted and proper use of funds allocated from the state budget and targeted revenue funds, and use of the funds not from the state budget according to the approved estimate by the entities finance from the state budget;
    3.9. Prepares monthly, quarterly, and annual reports on implementation of the state budget and presents it to the relevant entities;
    3.10. Carries out regulation of relations and settlements of the state budget with other budgets, and provides loans from the state budget as regulated by the Cabinet of Ministers of Azerbaijan Republic and in compliance with the state budget of the mentioned year;
    3.11. Regulates relations between the state budget and other budgets;
    3.12. Carries out actions and methodic leadership on budget-tax prognoses, as well as actions on discovery of financial reserves and their application;
    3.13. Defines the main rules on preparation, approval, and implementation of the expenditures estimates on budget financing;
    3.14. Analyses the socio-economic situation of the country in cooperation with relevant executive bodies and presents recommendations on resolution of socio-economic problems;
    3.15. Prepares recommendations on preparation and perfection of budget-tax and customs policy;
    3.16. As per relevant legislation, the Ministry issues licenses on fields of activity licensing of which is presented to the Ministry;
    3.18. Places orders on publishing excise marks, organizes their sale and accounting, as well as guarantees provision of producers and importers with excise marks.
    3.19. In cooperation with other executive entities, conducts negotiations within ins authority with relevant entities of other countries on signing agreements to prevent double taxation;
    3.20. Participates in determining the pricing policy and perfection of pricing;
    3.21. Presents recommendations on development and perfection of insurance activities;
    3.22. Participates in preparation of recommendations on determining of main directions of monetary credit policy, perfection of organizations of settlements and money turnover;
    3.23. Participate in preparation of recommendations on development of securities market and implements functions on emission of securities as prescribed by the legislation;
    3.24. In cooperation with relevant executive entities, participates in development and preparation of investment and innovation projects financed by the funds of the state budget, controls fruitful use of allocated funds;
    3.25. Controls use of management expenditures allocated from state budget and proper affixation and application of salary tariffs and position salaries in budget organizations, presents recommendations on perfection of organizational structure of state executive entities and defining the staff units;
    3.26. As prescribed in the legislation, conducts cooperation with international finance-credit organizations, conducts negotiations and recommendations with representatives of these organizations on matters of finance-credit policy, participates in negotiations on their allocation of credits to Azerbaijan Republic, gives recommendations on expenses related to membership fees to the international organizations;
    3.27. Analyses finance-currency problems related to international financial cooperation, prepares recommendations on perfection of finance-currency and credit relations with other countries, increase of currency reserves of the country and their thrifty use;
    3.28. Gives recommendations on determining the state limit on internal and external debt;
    3.29. Accounts state external debt of Azerbaijan Republic and the debt of other countries ot Azerbaijan Republic, conducts relevant actions on payment of these debt in cooperation with the National Bank of Azerbaijan Republic;
    3.30. Registers debt liabilities on internal and external credits received with state guarantee, reminds the relevant entities on timely payment of these credits;
    3.32. No matter the organizational-legal form or property type, carries out methodic leadership on organization of financial accounting and preparation of reports in all entities, enterprises and organizations functioning on the territory of Azerbaijan Republic; receives reports and other information as per the active legislation, provides adjustment of financial accounting and reporting system to the international financial reporting standards;
    3.33. Approves preparation and application of initial accounting documents, financial accounting reports, serious reporting forms, financial accounting register forms and requisites;
    3.34. Participates in preparation of recommendations on perfection of labor payments and preparation of programs on social protection of the population;
    3.35. Participates in preparation of payments’ balance;
    3.36. Signs credit agreements on behalf of Azerbaijan Republic with the National Bank of Azerbaijan Republic and other credit entities, provides timely return of these credits and payment of interests, controls aimed use of these funds;
    3.37. In cases of illegal privatization of state funds in implementation of service duties or other illegal activity discovered, carries out actions within its authority and reports to the relevant entities;
    3.38. In matters relating to the activity of Ministry, accepts and approves certain normative legislative acts, as well as prepares projects of legislative acts;
    3.39. As per the legislation, represents the government in banks with state capital, receives their quarterly reports and prepares recommendations on their activity;
    3.40. Conducts standardization, analysis and stamping of household products and valuable half-stock and melts and bars produced in Azerbaijan Republic, preparation of standardization chemicals, registration of producers, emission of registration certificates and receives standardization fees for these works as defined by the tariffs of the Ministry;
    3.41. Organizes increase of qualification fo the Ministry’s employees in defined regulation;
    3.42. Implements other functions as prescribed by the legislation.

4. The rights of the Ministry

The Ministry has the following right in order to implement its duties and authorities:
    4.1. Receiving the necessary documents from the state entities, organizations, non-budget state funds, and municipalities in order to prepare state budget project, conduct the control on its implementations, financial planning and financing of budget expenditures;
    4.2. Receive relevant fundamental documents from related organization in order to prepare economic and social programs and prognoses for the projection of the state budget for the next year within the period set forth by the Ministry;
    4.3. If necessary, taking the documents and reports necessary for preparation of the project of state budget from executive authority bodies, entities financed from the state budget, non-budget state funds and municipalities;
    4.4. In cases of abuse of fund allocations, as well as cases of not reporting the consumption of previous allocations, warn the management of relevant executive bodies and limit budget allocations to those entities, enterprises, and organizations;
    4.5. Conduct relevant actions in taking back the funds allocated from the state budget and consumed outside their planned direction from the entities, organizations and municipalities as per the legislation;
    4.6. Conduct financial control entities, enterprises and organizations using funds from the state budget;
    4.7. As per the legislation, as well as with resolutions of law-enforcement and court entities, conduct examinations and check-ups in entities, enterprises and organizations;
    4.8. Receive official information from the central executive bodies providing revenues to the state budget;
    4.9. Analyze financial and economic activity in state entities, enterprises and organizations;
    4.10. Control over compliance with licensing regulations in entities licensed by the Ministry of Finance;
    4.11. Receive statistical and other reports from the executive authority entities, entities, enterprises and organizations no matter the organizational-legal form, on implementation of state budget and out-of-budget state funds, use of out-of-budget funds of the budgetary entities and internal and external credits received through governmental guarantee;
    4.12. No matter the organizations-legal form and property type, control the activity of the enterprises, entities and organizations processing and applying valuable metals and precious stones for any purpose;
    4.13. In order to conduct standards supervision as per the legislation, entering the controlled entity, taking the valuable metals and merchandise for expertise, and charging the violators of the standards regulations;
    4.14. Issue decrees and resolution with obligatory compliance within his authority as per the the legislation.
    4.15. Implement other authorities as per the legislation.

5. Organization of the Ministry’s activity

    5.1. The Ministry is lead by the Minister assigned and released by the president of Azerbaijan Republic as per the Constitution of Azerbaijan Republic.
    5.2. The Minister conducts management within the filed of activity of his discretion and is personally responsible for implementation of the duties set forth for the Ministry.
    5.3. The Minister has one 1st deputy and total of three deputies assigned and released by the President of Azerbaijan Republic. One of the deputy ministers carries out the role of director of State head Treasury.
    5.4. The Minister of Finance has the following authorities:
Presents recommendation on the Ministry’s authority to the President of Azerbaijan Republic and the Cabinet of Ministers of Azerbaijan Republic;
Leads the activity of the Ministry as well as the activity of the State Head Treasury;
Implements task allocation among the deputy ministers;
Hires and releases employees of the Ministry’s apparatus as well as heads of other entities and organization under the Ministry;
Approves the structure and staff table of the central apparatus of the Ministry, maintenance estimate as per the allocated budgetary expenditures, as well as the statutes of the Ministry’s independent structures;
Implements gratuity and warning activities on employees of the Ministry as prescribed by the legislation.
    5.5. A Methodic Board is created of specialists, representatives oif scientific and other organizations on discussions of recommendations on perfection of financial planning, budget estimations prognoses, financing of economy, financial accounting and reporting, methodic of control-examination.
The content of the Methodic Board and its Statute are approved by the Minister of Finance.
    5.6. The Ministry prints magazines, bulletins, and other publications as per defined regulation in order to implement its duties.
    5.7. The Ministry has the Board containing the Minister (the chairman of the Board), his deputies as per their assignment, leading employees of the ministry and other persons (total of 9 members) and approved by the Cabinet of Ministers.
The meetings of the Board feature discussions on Ministry’s activity, perfection of financial mechanisms, preparation and implementation of state budget.
The meetings of the Board are valid when two-thirds of the members are present. A simple voting majority is implemented when making decisions; in cases of equal number of votes, the chairman of the Board makes the final decision.
The decisions of the Board are recorded and are usually implemented by the decree of the Minister. In cases of differing opinions between the Minister and the members of the Board, the Ministers implements his decision and report the opinion difference to the Cabinet of Ministers of Azerbaijan Republic.