Problems related to transition to result-based budgeting mechanism in Azerbaijan revealed

The potential and budgetary discipline of the relevant state institutions involved in the reforms in the implementation of the Medium Term Expenditure Framework (MTEF) and the transition to the result-based budgeting (RBB) mechanism are not at the required level and need to be increased, Rashad Hasanov, Deputy Director of the MTEF Preparation Center of the Office of the Ministry of Finance said at the seminar on Application of the Medium Term Expenditure Framework in the education sector and transition to the result-based budgeting mechanism, Report informs.

"At the same time, it is a shortcoming that the Sector Strategic Plans, including action plans presented by the leading organizations in the pilot units do not include other budget organizations with expenses in the relevant units. In addition, Sectoral Strategic Plans based on relevant pilot units of functional classification, including Integrated Action Plans, do not fully cover all costs of education, agriculture, and environmental protection sectors, including capital investment and administrative expenses of organizations.

"Another area for improvement in this field is the parallel application of the traditional annual and MTEF calendar," Hasanov noted.