The Cabinet of Ministers has made an important decision on the classification of budget expenditures

Amendments have been made to Cabinet of Ministers Resolution No. 440 of October 11, 2018, "On the Approval of the Unified Budget Classification of the Republic of Azerbaijan."

In this regard, Prime Minister Ali Asadov signed a resolution.

The document approves the "Functional Classification of Budget Expenditures of the Republic of Azerbaijan" and the "Administrative Classification of Budget Expenditures of the Republic of Azerbaijan" in a new version.

It is reported that the changes were made in order to strengthen the administration of public finances and accountability, enhance transparency, as well as ensure the targeted use of budget funds.

According to the resolution, organizations financed from the state budget and receiving financial assistance, as well as entities covered by the consolidated budget, must prepare their applications for the 2028 consolidated and state budget drafts in accordance with the new functional and administrative classification and submit them to the Ministry of Finance.

In addition, the Ministry of Finance, together with the relevant government agencies, will take the necessary measures to apply the new classification in a pilot mode based on applications related to the 2027 consolidated and state budget drafts.

The provisions of the resolution concerning the functional and administrative classification of budget expenditures will come into effect on January 1, 2028.