BAKU, Azerbaijan, October 22. Digitalization of
state budget planning will accelerate reforms in Azerbaijan, Ilham
Karimov, head of the Results-Based Budget Policy Department at the
Ministry of Finance, said during a conference on the digital
transformation of public finance held in Baku on Thursday, Trend’s correspondent reports
from the event.
According to Karimov, digitalization of state budget planning
and execution processes, along with the introduction of automated
systems, will help accelerate budget reforms, improve the efficient
use of human resources, and enable more accurate assessment of
outcomes.
He noted that work has begun on implementing a results-based
budgeting mechanism, with plans to incorporate additional sectors
into the reforms each year. One of the main challenges in this
process is the insufficient level of digitalization and
automation.
"Comparing the traditional budgeting process with the new
mechanism, it becomes clear that the traditional approach requires
significant time and labor resources. Data is collected in separate
spreadsheets and then consolidated and analyzed, making the process
rather complex. In contrast, the new approach requires
consideration not only of the financial amounts allocated to
individual implementing entities but also of measures across entire
sectors and their corresponding outcomes," he noted.
According to Karimov, under the results-based budgeting
mechanism, measures are aligned with strategic goals, and
performance indicators and interim targets are established to
monitor their implementation.
"This is not just about annual financial indicators. Decisions
and measures in specific sectors can span several years, with
outcome indicators established to track their implementation.
Ultimately, the results of these measures should contribute to
achieving the strategic goals set for the respective sectors," the
department head explained.
He emphasized that as the volume and complexity of budget data
increase, processing it using traditional spreadsheets and separate
dashboards becomes increasingly difficult. For this reason,
developing unified digital platforms and automating data processing
are particularly important.
"It is difficult to manage a large database effectively using
traditional Excel spreadsheets or separate dashboards. Our
experience shows that even when relevant forms and guidelines are
provided, users still encounter difficulties when entering data. If
a digital system incorporates built-in guidance and selection
options, these processes could be significantly accelerated," he
added.
According to Karimov, the use of artificial intelligence tools
can help users enter data accurately, make appropriate selections,
and complete processes more efficiently.
"It is inefficient for highly qualified specialists to spend a
significant amount of their time filling out Excel spreadsheets and
subsequently processing the data. Automated systems and platforms
should make it possible to complete forms electronically, conduct
preliminary data validation, and identify potential errors in
advance," the department head stressed.
He pointed out that introducing preliminary validation
mechanisms during data entry on digital platforms would help
improve reporting quality and prevent errors.
Karimov added that one of the goals is to integrate the system
into the budget program in the future. According to him,
facilitating digital data exchange, consolidating information, and
conducting monitoring on a single platform will help accelerate the
implementation of reforms.
