Gubad Ibadoglu: The use of fines and sanctions by a third party is not provided by law

Baku/24.10.17/Turan: The participation of the Presidential Administration of Azerbaijan in the use of fines and sanctions is not provided by law, Gubad Ibadoglu, Doctor of Economic Sciences, said. He stated the illegality of transferring part of the proceeds from the use of fines by various structures to the accounts of the services providing the activities of the head of state. In particular, on May 1, 2017, the President issued a decree "On Additional Measures to Strengthen Social Protection of Civil Servants in the Presidential Administration, the Presidential Administration and the President's Special Medical Service." According to the decree, a part of fines exacted by different bodies should be used for the above purposes.

"In its economic essence, all fines and sanctions can be used for two purposes. Penalties and sanctions can be divided between the budget and state agencies that carry out these services legal actions. Fines and other forced payments have a dual function: fiscal and incentive. According to the fiscal function, most of the fines and forced payments should be directed to the budget. As for the incentive function, some of the fines and coercive payments should be sent to state bodies that carry out legal actions. The participation of a third party is not envisaged here, "Ibadoglu said.

According to him, the use of fines in order to strengthen the social protection of state officials of the Presidential Administration, the President's divisions and the Special Medical Service is contrary to the law "On the Budget System" and the decision of the Cabinet "On Budget Classification". "It seems that this decision was made after the last structural changes in the Office of the President due to the lack of financial sources to increase the salaries of its employees. I think that this is wrong. These funds should be sent to the state budget, and from there centrally distributed. Only in this case, these funds, as budgetary, could be taken by the Presidential Administration, the President's Administration and the Special Medical Service of the President," Ibadoglu said.

According to him, according to the forecast data, the amount of fines and sanctions collected in the next year will exceed 400 million manats. Ibadoglu drew attention to the fact that, according to the President's decree, five percent of the fines collected by the State Traffic Police will be transferred to the disposal of these three structures. It is interesting that 95 percent of the sum remains at the disposal of the "GAI" (City road police) itself and thus nothing enters the state budget.

In the case of the tax authorities, half of the collected penalties are transferred to the state budget, while the other half remains at the disposal of the fiscal department. Five percent of the second part of the fee is now transferred to the administration, managers and special medical service.-03B06-