Azerbaijan plans to eliminate extra-budgetary funds

Part of the extra-budgetary funds of state organizations in Azerbaijan will be transferred to the state budget.

As Report informs, the relevant provisions are set out in the decree of Azerbaijani President Ilham Aliyev on additional measures concerning the use of the funds of targeted budgetary funds formed within the state budget, as well as the extra-budgetary funds of organizations receiving budgetary financing.

According to the decree, the extra-budgetary funds of state organizations financed from the state budget, with the exception of the Ministry of Internal Affairs, the State Customs Committee, and the State Tax Service under the Ministry of Economy, will be used to strengthen the social protection of employees who do not hold administrative and auxiliary positions in accordance with the law "On Civil Service."

The remaining part of the extra-budgetary funds of these organizations will be transferred to the state budget.

The following maximum amounts of supplements to official salaries, bonuses, and other payments from extra-budgetary funds have been determined:

- supplements to the official salary – during a calendar month, for each employee, up to 1 time the amount of his monthly official salary;

- bonuses and other payments – during a calendar year, up to 20% of the annual payroll fund.

The Cabinet of Ministers must resolve the issues arising from this Decree.

The Ministry of Finance must, within one month, prepare and submit to the head of state its proposals on the following issues:

- the elimination of targeted budgetary funds created within the state budget and the use of the revenue sources of these funds;

- the improvement of normative legal acts;

- the procedure for the formation, collection, use, and accounting of the extra-budgetary funds of organizations financed from the state budget;

- the formation and use of funds received from paid services provided by institutions subordinate to the Presidential Administration Affairs Department and the Special Medical Service.