Azerbaijan creates Green Corridor System for state budget expenditures

By Azernews

Asim Aliyev

The Board of the Ministry of Finance has approved the "Rules of financial transactions through the state treasury and accounting of these transactions," Azernews reports.

The document was signed by the Minister of Finance, Samir Sharifov.

At the same time, the "Instruction on assuming obligations for state budget expenditures" and "Instruction on treasury accounting of goods, works, and services received under budget credit orders" approved by the ministry's decision of December 28, 2000, were cancelled.

According to the new decision, the Ministry of Finance will create the "Green Corridor" system, which will ensure the implementation of the authority to authorise cash operations for a number of expenditures through special software in order to simplify financial operations for expenditures.

Besides, the Ministry will determine the list of expenditures covered by the Green Corridor System.

This system will not apply to expenditures providing for payment of the cost of goods, works, or services on the basis of a sales contract or a civil law contract in accordance with the Law "On Public Procurement" or the Civil Code. If necessary, the Ministry of Finance may limit the application of the "Green Corridor" system to expenditures by assessing the emerging risks.

The procedure for opening financial transactions related to expenditures at the budget level is also defined. The procedure for ensuring receipt of funds into the state treasury and closing of treasury accounts is also defined. Thus, the details of treasury accounts will consist of 28 characters and take into account the last 3 digits of administrative classification codes defined by the unified budget classification.

In addition, the scope of application of the Treasury Management Information System (IMS) has been defined.

By January 10 of each year, the IMS operator enters income and expenditure estimates determined by budget levels into the personal accounts of treasury accounts of bodies and institutions. The organisation will be able to make changes to the personal account within 3 working days, and the operator will check and approve these changes within 2 working days.

The State Treasury under the Ministry is instructed to submit this decision to the Ministry of Justice within three days for inclusion in the State Register of Legal Acts.