Baku:Targeted budget funds in Azerbaijan are set to be abolished, with their revenues to be unconditionally transferred to the state budget, APA reports.

According to Azeri-Press news agency, relevant amendments are proposed to multiple codes and laws, including the Forestry Code, Criminal Code, Tax Code, and several others related to environmental protection, medical insurance, highways, and more. These amendments are part of a draft prepared under the framework of a presidential decree aimed at the use of targeted budget funds and extrabudgetary funds of organizations financed from the state budget.

The draft proposes the abolition of targeted budget funds and the transfer of revenues derived from fines and compensation for damages to the state budget. It also seeks to establish a mechanism for allocating other financial sources to finance the social protection of employees in the relevant authorities.

Currently, the management of resources from certain funds in parallel with the state budget presents challenges in fiscal planning, resource allocation, and financial oversight. The draft aims to address these issues by improving mechanisms for managing resources of targeted budget funds and applying a more efficient financial management model.

A new management model will be established corresponding to the economic nature of these funds, enhancing fiscal planning by concentrating financial flows within the state budget. This includes a more flexible mechanism for financing environmental and natural resource-related measures. The draft is designed to reclassify and manage existing financial flows without creating new financial obligations.

The funds set for abolition include the Fund for Forest Conservation and Reproduction, the State Fund for the Restoration of the Mineral Resource Base, among others.