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Qabil Ashirov

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Azerbaijan’s international standing in public financial management once again highlights one of the key strengths of the country’s economic policy. In the 2026 Chandler Good Government Index, published by the Chandler Governance Group, Azerbaijan ranked third among 133 countries in the “Financial Stewardship” category. Placed behind Singapore and Norway, Azerbaijan recorded strong results in fiscal discipline, the efficiency of public spending and public debt management.

One of the most notable components of this performance is Azerbaijan’s budget surplus. The country ranked first among the 133 countries assessed under this indicator, reflecting a strong balance between government revenues and expenditures. A budget surplus serves as one of the key pillars of fiscal resilience, providing the government with greater capacity to finance strategic projects, develop infrastructure, maintain social programs and support economic activity.

These fiscal capabilities are underpinned by Azerbaijan’s long-term approach to public finance. The management of budget revenues, the allocation of expenditures toward priority areas and the accumulation of financial reserves have become important elements of the country’s economic policy. This approach has contributed to the creation of financial buffers that strengthen Azerbaijan’s resilience to both external and domestic economic shocks.

Azerbaijan’s 16th-place ranking in public spending efficiency is another significant achievement. In a modern economy, the impact of public finance depends heavily on how government resources are allocated and what economic and social outcomes they generate. Large-scale investment in infrastructure, energy, transport, regional development, social programs and the reconstruction of liberated territories has increased the economic and social impact of public investment.

Azerbaijan’s 26th-place ranking in the public debt indicator highlights another important dimension of its fiscal policy. A relatively low debt burden provides the government with additional financial flexibility. Such fiscal space can support economic growth, strategic investment and financial stability during periods of increased volatility in global financial markets.

Azerbaijan’s fiscal performance also becomes particularly significant when considered alongside the country’s substantial financial reserves. The reserves of the State Oil Fund of Azerbaijan and the Central Bank provide an important financial buffer for the national economy. These reserves enhance fiscal flexibility, support the management of external obligations and contribute to macroeconomic stability.

The fiscal opportunities generated by Azerbaijan’s energy sector also play an important role. Oil and gas revenues have served as one of the principal foundations of public finance for many years. At the same time, current economic policy is increasingly directing these financial resources toward the development of the non-oil sector, industrialization, transport and logistics projects, renewable energy and the expansion of the economic potential of the regions.

The quality of financial management also sends an important signal to investors. A manageable public debt burden, fiscal discipline and substantial financial reserves strengthen positive expectations regarding Azerbaijan’s macroeconomic stability. These factors contribute to a more favorable environment for long-term investment projects and provide investors with greater visibility over the country’s fiscal position.

The result achieved in the Chandler Good Government Index represents an important international indicator of the role that fiscal discipline plays in Azerbaijan’s economic policy. Azerbaijan’s third-place ranking among 133 countries reflects the institutional approach that the country has developed in managing public finances.

The next stage presents an opportunity to convert this fiscal strength into even higher economic productivity. A sound public finance position provides a strong foundation for greater private investment, higher non-oil exports, new industrial facilities, technological development and increased investment in human capital. Azerbaijan’s strong position in financial stewardship can therefore serve as an important starting point for pursuing these long-term economic objectives.

Azerbaijan’s third-place position globally in Financial Stewardship carries significance beyond a single ranking. It reflects the international recognition of the fiscal resilience created by the combination of budget discipline, financial reserves, public debt management and efficient government spending. By combining this fiscal resilience with economic diversification, industrial development and the expansion of high-value-added sectors, Azerbaijan can turn its strong public finance position into one of the foundations of its next stage of economic development.