Every Manat in Plain Sight: Azerbaijan Implements Unified Financial Brain of the State

An event has occurred in our financial reality that appears routine, but is essentially pivotal. For the first time in the history of financial management, disparate data from different agencies will flow into a single hub.

The head of state has approved the "Digital Public Finance" system. Thus, the transition to modern - transparent, convenient, and effective treasury management has been launched. From now on, the smart platform will serve as a living link for all state monetary flows: from the moment taxes and fines are received to long-term planning of public debt and control over the construction of major facilities, writes the newspaper "Kaspi".

A Unified Financial Brain

Now budget processes are going online: according to expert assessments, the state's "unified financial brain" is designed to radically increase the transparency and efficiency of every operation, replacing fragmented and largely outdated approaches with a common intelligent mechanism.

The newest approach opens fundamentally different possibilities. If previously it took weeks or even months to collect and reconcile reports, now the picture of what is happening in the economy will be visible at a glance. This means the government will be able to notice and address risks in time, promptly allocate resources exactly where they are needed most, cutting unnecessary expenses at the planning stage.

Ultimately, digital transformation of finances changes the very philosophy of public administration, the expert community believes. State finances cease to be a set of dry, disparate figures. And most importantly, if every manat can be tracked in the smart system from the moment it enters the national treasury to the implementation of a specific project, trust in the state's financial policy increases.

Coming Out of the Shadows

The approved document turned out to be extensive and truly strategic, shares economist Eldeniz Amirov.

"In the absence of external pressure, this platform is capable of fundamentally changing the very architecture of public money management. The essence of the reform is that the state budget, public debt, treasury, investment projects, financial sanctions, and the work of state enterprises are now united in a common digital ecosystem. The main difference of the new approach is that data ceases to be archival. In the system, everything - from accounting to subsidy analysis - is tracked and predicted in real time. And this radically changes the logic of control. Now risks can be seen and addressed in advance. In parallel, the system makes the real impact of tax incentives on the budget transparent and brings order to the public sector, where financial discipline becomes systemic. Essentially, the tools that have been implemented in a fragmented manner for years are finally assembled into a single logical mechanism capable of fundamentally changing the rules of the game in the country's financial processes," he said.

Additional momentum to the reform is provided by electronic contracts, digital accounting, and automated payment systems. All these tools consistently narrow the opportunities for shadow operations and make financial reporting maximally transparent. Money can now be tracked at every stage: from planning to actual use.

The most important thing in the current situation is the systemic approach. And if the system is allowed to work impartially, without external interference and with proper technical support, it is capable of changing the rules of public finance management.

In One Cloud

Today, the ministries of finance and digital development are working to make the system as effective as possible. The implementation of electronic contracts and transparent procurement schemes virtually eliminates the human factor. Special attention is given to eliminating paper bureaucracy. For this purpose, more than 40 types of strict reporting have already been converted to digital format, and artificial intelligence algorithms monitor the accuracy of calculations.

At the foundation of the domestic transition are 13 specialized subsystems. They cover literally everything - from electronic budget planning to control over state company expenditures and public debt management. The entire enormous array of information now lives in the government cloud (G-cloud). And this guarantees not only the highest level of cybersecurity but also seamless data exchange between agencies.

Furthermore, within the framework of the new strategy for developing the digital economy and modernizing the financial sector, advanced Data Lakehouse technologies are already being implemented. A centralized data environment for advanced analytics is being created, allowing the government to make decisions based on real figures. Additionally, monetary authorities together with the World Bank are assessing the readiness of our financial system to implement AI for risk assessment and anti-corruption efforts.

All this allows the government to use Big Data technologies for deep analysis. For ordinary citizens and businesses, such changes mean the emergence of convenient electronic personal accounts. There one can instantly pay fines, taxes, or process government deductions. At the same time, full digitization of administrative fines, duties, and tax deductions (e-exemption) is expected, which will make settlements with the state instantaneous. Finally, all government contracts are being transferred to electronic format (e-contracts) to eliminate the risk of abuses.