Since 2001, Azerbaijan significantly has increased its growth and has been able to reduce poverty. This was complemented by a strong rise in wages, transfers and a well-targeted social benefit system. In this context, the authorities have sought to strengthen the public financial management (PFM) in recent years. The PFM Action Plan 2011-13 has provided the blueprint for action on PFM reform. There have been some notable achievements through the Action Plan including improvements to the Budget Law in 2013 (to include tables on medium term revenues and expenditures), to tax administration and accounting and to financial reporting. International organisations and donors have made a significant contribution to PFM reform initiatives in Azerbaijan. The EU has supported improvements to tax administration and internal audit and contributed to anti-corruption initiatives. As part of an on-going program of development, the government, in cooperation with development partners, proposes to take stock of the impact of achievements to date through a wide-ranging assessment of the status of public financial management using the Public Expenditure and Financial Accountability (PEFA) performance measurement framework. In accordance with standard practice, the PEFA assessment will be published and provide the foundation for reinvigorating dialogue on future PFM reform and a new PFM Action Plan. AETS team has been awarded this contract to provide the Government of Azerbaijan with a better understanding of the performance of the public financial management system and those areas where further attention is needed to strengthen the framework and move to a higher standard in terms of international good practice. The PEFA assessment will also advice the government on preparation of a public financial management action plan to improve performance in areas where there is a significant gap between Azerbaijan and international good practices. AETS consultants will provide expertise in the areas of budget management and tax administration and policy. The overall PEFA assessment is a cooperative venture, funded jointly by the Swiss State Secretariat for Economic Affairs (SECO), the European Union and the World Bank.

Governance and Human Development

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