Background Information for CSOs on EC Call under the Neighbourhood Civil Society Facility

Background Information for CSOs to apply to EC Call under the Neighbourhood Civil Society Facility for actions in the Public Finance Policy and Management (PFPM)

Public Finance Policy Reforms Support Program is financed by European Commission and its implementation is intended to be carried out from the beggining of 2013 till the end of 2015. One of the objectives of the Program is to improve the quality of public finance management and its planning in a medium and longer-term perspective. The Program  also targets to promote budget planning of Azerbaijan Republic and by doing so correspond witrh the EU’s standards in order to enhance tranparency and budget efficiency.

The issues concerned implementation of the Program has been disccussed between head of Chamber of Accounts of Azerbaijan Republic and delegation of EU on 06 september 2011 during CAPSAP (Corporate and Public Sector Accountability Project)  negotiations. There was a meeting between Ambassador of EU to Azerbaijan Mr. Kobia and the chairman of the Chamber of Accounts Mr. Heydar Asadov and the issues related to Chamber of Accounts within Program was discussed. In the Press release issued by Chamber of Accounts for the public says  that it is interested in implementing the component concerning the Supreme Audit Institution of Azerbaijan in the Program.

It  also mentions that, the EU delegation expressed their interest in coordinating the activities within the Public Finance Policy Reforms Support Program with the activities under the Corporate and Public Sector Accountability Project (CAPSAP). But despite that, government institutions do not provide broad information about program.

One of the main objectives of the Program is to enhance effectiveness of budget expenditures by strengthening control over them and achieve effective management of budget spending. Although the amount of state budget revenues of Azerbaijan Republic is increasing year by year, control over spending of budget funds is still weak. The Program’s purpose also aims to help government in these issues. It also intends to cooperate with the government bodies related to the budget planning , spending of budget funds, and budget audit.

Here also includes cooperation among Ministry of Finance of Azerbaijan Republic, Chamber of Accounts and EU institutes. Program also aims at building the institutional capacity of selected public administration institutions through measures such as training, providing expertise and improving administration procedures. Involvement of NGOs is also crucial  within the Program. Besides, Program’s targets to provide availability of information about the state budget and to strength Parliament and audit control over it.

The big share of oil factor in the state budget of Azerbaijan creates fiscal risks for the future. From this point of view Program aims to achieve fiscal stability by strengthening control over planning.

© CESD, 2012


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