Azernews.Az

Akbar Novruz

Read more

Next year, over half of Azerbaijan’s state and consolidated budgets will be financed through non-oil revenues, reflecting the country’s growing economic diversification.

Azernews reports that Finance Minister Sahil Babayev made this statement on November 7 during a joint meeting of the parliamentary committees on Legal Policy and State Building, Defense, Security and Combating Corruption, Human Rights, and Regional Issues.

The minister noted that 57 percent of the state budget and 63 percent of the consolidated budget for 2026 will come from non-oil revenues. However, he emphasized that increasing taxes is not the right approach to achieving these results.

“Sometimes they try to completely cover this by directing it in various directions and increasing taxes. This is not the right approach. What is the primary source of growth? The growth of non-oil GDP itself,” Babayev said.

According to the minister, non-oil GDP is projected to grow by around 10 percent in nominal terms and 5 percent in real terms next year. “Taxes are levied on nominal figures. That is, first of all, these revenues increase because GDP itself is growing. In general, when discussing such issues, the share of taxes in GDP is always looked at from a macroeconomic perspective — to what extent taxes and collected fees create a burden on GDP,” he explained.