BAKU, Azerbaijan, December 29. The President of the Republic of Azerbaijan Ilham Aliyev signed a decree on approving the "Rules for monitoring the implementation status and analysis of performance indicators of annual and medium-term budget projects and forecasts, as well as income and expenditure estimates of legal entities owned by the state and the controlling share (stock) of which is owned by the state and public legal entities" and the "Rules on the distribution of net profits of legal entities owned by the state and the controlling share (stock) of which is owned by the state and public legal entities", the Ministry of Finance said in a statement, TurkicWorld reports.
The approved rules, enacted to implement the decree dated August 25, 2025, “On additional measures for the efficient management of state finances”, aim to ensure efficient management of state finances, increase transparency in budget planning and operations of state enterprises, improve accounting and reporting in state enterprises, anticipate potential obligations to the state budget, and determine the distribution of net profit and dividend policy for state enterprises.
According to the approved rules, the annual and medium-term budget drafts, forecasts, and the execution of income and expenditure estimates of state enterprises will be systematically monitored, and their performance indicators will be analyzed. Additionally, state enterprises will pay dividends to the state budget amounting to at least 30% of their net profit.
Starting April 1, 2026, state enterprises will submit budget indicators and IFRS-compliant financial statements to the Ministry of Finance in the specified format and within the established deadlines. The Ministry will monitor the execution of annual and medium-term budget drafts and forecasts, as well as annual income and expenditure estimates, analyze performance indicators, and, beginning in 2026, report the results of these analyses to the President on a quarterly basis.
According to the decree, state enterprises must also submit financial statements for previous years and the approved budgets for 2026 to the Ministry by April 30, 2026.
The provisions regarding the approval of these rules will come into force on January 1, 2026.
