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Qabil Ashirov

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Azerbaijan's state budget for next year has been structured in line with the country's key priorities, Finance Minister Sahil Babayev has said.

Speaking at a joint meeting of several parliamentary committees, including those responsible for legal policy and state-building, defence and security, human rights, and regional affairs, Babayev said the government was seeking to strike a balance between competing priorities while preserving fiscal stability.

"We are working to prepare a budget that takes into account various priorities and needs, addresses them in a balanced manner and operates within an expenditure ceiling that allows the country's macro-fiscal and macroeconomic framework to be maintained without posing risks to financial stability," the minister said.

Babayev also noted that Azerbaijan provides substantial tax and customs exemptions, with the overall value of these incentives remaining significant.

He said the primary objective of such measures was to support economic development, particularly the real sector, and provide assistance to businesses and entrepreneurs.

The minister stressed that tax and customs incentives should be granted for limited periods, arguing that their effectiveness should be reassessed before any extension is approved.

"We have always advocated making these incentives time-limited. When an exemption expires, its possible extension is assessed by taking into account the results achieved during the previous period. We reassess the actual impact of the incentives granted," Babayev said.

He added that the decisions to introduce tax and customs exemptions were based on considerations beyond purely economic criteria.

"A considerable share of these exemptions has been introduced as part of social policy and the concept of a welfare state, with the aim of protecting vulnerable groups of the population," the minister said.