ARTICLE
7 April 2026

Digital Public Finance And Action Plan

Bureau 28a

Contributor

Bureau 28a offers expertise in all areas of Azerbaijani law relevant to businesses, governments, not-for-profits, and individuals. We advise those from outside entering, already in, interested in, or exiting the market; assist those from Azerbaijan investing outside; and help bringing to those on the ground here best practices worldwide.
On 26 January 2026, the President approved the Regulations of Digital State Finance Information System (ISDSF or RDMIS) by Decree No. 590.
Azerbaijan Finance and Banking

On 26 January 2026, the President approved the Regulations of Digital State Finance Information System (ISDSF or RDMIS) by Decree No. 590.

Under these Regulations, the system is designed to enhance public financial administration through integrated analytics, forecasting, reporting, and improved service quality across functions overseen by the Ministry of Finance. The scope of RDMIS covers key public‑finance domains, including: (i) state budget revenues: tax, customs, duties, dividends, and other public‑sector income; (ii) auditing; (iii) accounting; (iv) state financial control; (v) administrative fines; (vi) the State Treasury; (vii) public debt; and (viii) financial obligations.

The System is established and operated in accordance with the government‑wide rules on the integration of information resources and systems, approved in 2018 by Presidential Decree No. 263. The Regulations further require the storage of backup copies in the Government Cloud, interoperability with other state information systems, implementation of information‑security safeguards, and the inclusion of RDMIS in both the unified state register of information resources, systems, and electronic services, and the state register of personal‑data information systems.

The Ministry of Finance is designated as the owner and operator of RDMIS, responsible for its administration and ongoing development.

On 27 February 2026, the Action Plan for Accelerating Digital Development for 2026–28 was approved by Presidential Instructive Order No. 953.

The Plan outlines priorities for expanding digital technologies, fully digitizing public services, implementing unified data‑governance principles, strengthening cybersecurity, developing AI and innovation ecosystems, and improving the digital talent pipeline. It mandates coordination among state institutions, financing through the state budget, migration of government systems to the "Government Cloud," and creation of legal frameworks for venture financing, crowdfunding, and support for startups. The Plan also aims to attract global talent through instruments like a "digital nomad" visa and to enhance Azerbaijan's competitiveness, digital sovereignty, and position in international rankings.

The Ministry of Digital Development and Transport is responsible for the implementation of the Plan and the Digital Development Council responsible for coordinating the implementation. Monitoring and evaluation of implementation are carried out by the Center for Economic Reform Analysis and Communication.

AI BILL

On 17 March 2026, a bill was introduced in the Milli Maclis to amend the Criminal Code, the Code of Criminal Procedure, and the Laws On Information, Informatization and Information Protection, and On Media. Although these acts differ in scope and legal character, the proposed amendments collectively signal a shift toward more comprehensive regulation of the digital environment.

The draft introduces a new Section 148‑2 to the Criminal Code, establishing liability for creating or disseminating fabricated or misleading photo, video, or audio materials generated using AI or other digital synthesis tools without the consent of the individual whose likeness or voice is used. The proposed penalties include fines ranging from AZN3,000 to AZN7,000, community service, restriction of liberty, or imprisonment for up to three years.

The draft further adds a new Section 242‑1, establishing stricter liability for producing or distributing highly sensitive or inappropriate digital materials created with similar technologies without the individual's consent. The proposed sanction for this category is imprisonment for a term of three to seven years.

The bill also amends the Law on Information by adding Sub‑Section 13‑2.3.9‑1, classifying as restricted any AI‑generated materials that do not reflect reality or that fall within categories deemed inappropriate or sensitive when created without consent. Additionally, a new Sub‑Section 13‑2.7 requires that publicly displayed AI‑generated materials include clear and visible labeling indicating that AI was used in their creation.

Finally, the bill proposes adding Sub‑Section 14.1.13‑1 to the Law on Media, prohibiting the non‑consensual distribution of fabricated, misleading, or otherwise sensitive AI‑generated materials. Corresponding amendments to Sub‑Sections 41.1.1 and 66.1 of the same Law ensure consistency across related media responsibilities and restrictions.

GREEN ENERGY

Kazakhstan's Mazhilis ratified the Green Energy Corridor Strategic Partnership Agreement in March 2026, following Azerbaijan's ratification and Uzbekistan's approval. The project envisages transmitting renewable electricity via an HVDC subsea cable across the Caspian Sea, while having green hydrogen and green ammonia produced using renewable energy traded and exported through separate trade and transport channels. It is further embedded in the CAREC (Central Asia Regional Economic Cooperation) Program, which ADB and AIIB support through financing and institutional development for cross border electricity trade.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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