BAKU, Azerbaijan, June 12. Subsidies have, in
some cases, been directed to expenses other than those for which
they were intended in Azerbaijan last year.


This was stated in the opinion of the Chamber of Accounts on the
draft law "On the implementation of the 2025 state budget".


The opinion says that in the reporting year, some of the
subsidies allocated from the state budget have been unused and have
remained in the balance, and in some areas, despite the provision
of subsidies for years, the effectiveness of activities has
remained low.


According to the information, although subsidies were envisaged
in 47 directions according to administrative classification in
2025, only 46 of them were implemented. The funds planned to be
allocated for the direction of "Preparation of feasibility studies
for reforms in a number of state enterprises" were not
implemented.


According to the analysis of the Chamber of Accounts, the
implementation level of subsidy directions varied between 16.2% and
100% compared to the verified allocation. Funds were fully
implemented in 19 directions, the implementation level in 15
directions was higher than 90%, and in 12 directions it was lower
than 90%.


The largest share of implemented subsidies – 41% – belonged to
the Agrarian Credit and Development Agency under the Ministry of
Agriculture of Azerbaijan. These funds were directed to providing
subsidies for planting, crops, seeds, animals, and cocoons to
agricultural producers.


The chamber's audit on the assessment of the effectiveness of
state support in the field of crop production found that the
financing of sowing subsidies mainly takes into account the
implementation of sowing and plowing works, and risk criteria
related to productivity indicators have not been formulated. As a
result, it was noted that the activities of some farmers are more
focused on obtaining subsidies than on increasing productivity.







The audit conducted in the field of agricultural insurance
showed that the level of animal insurance is low. According to the
Agricultural Insurance Fund, the number of animals insured in
2023–2025 amounted to only 0.04%-0.08% of the total number of
cattle and small animals. The Chamber of Accounts attributed this
to the poor implementation of the process of identification and
marking of animals.


The opinion noted that among the subsidies allocated to
state-owned enterprises, the largest share was allocated to
expenditures related to reforms in the field of public transport.
The main part of these funds was directed to BakuBus LLC in order
to cover the losses incurred in the field of passenger
transportation in Baku. Other organizations that received a high
share of subsidies were Azeristiliktachizat OJSC and Azerbaijan
Television and Radio Broadcasting CJSC.


The Chamber of Accounts also noted that external state financial
control measures carried out in 2025 showed that subsidies were, in
some cases, directed beyond their intended purpose, including to
finance capital expenditures. However, according to the State
Financial Statistics Manual, subsidies should be used only for the
purpose of covering current expenses.


The opinion added that some organizations didn't fully use the
allocated subsidies and kept the funds in bank accounts at the end
of the year. As an example, it was indicated that 9.9 million manat
($5.8 million) of the 15 million manat ($8.8 million) allocated to
the Mortgage and Credit Guarantee Fund to finance interest
subsidies on loans taken by entrepreneurs in manat remained unused
at the end of the year.


The Chamber of Accounts emphasized the importance of developing
clearer criteria and specific rules regulating the mechanism for
providing subsidies from the state budget.