Azernews.Az

Akbar Novruz

Read more

Azerbaijan plans to fully finance its current state budget expenditures through non-oil and gas revenues by 2030, as the government seeks to reduce fiscal dependence on hydrocarbon income.

Deputy Finance Minister Himalay Mamishov announced the target during discussions on the draft 2027 state budget at a joint meeting of the Milli Majlis committees on Youth and Sports, Public Associations and Religious Organisations, and Culture.

According to Mamishov, Azerbaijan's state budget expenditures for 2027 are projected at AZN 42.4 billion ($24.94 billion), representing an increase of AZN 696.4 million ($409.65 million), or 1.7%, compared with 2026.

Over the five-year period from 2023 to 2027, state budget expenditures are expected to increase by AZN 5.9 billion ($3.47 billion), equivalent to growth of 16.3%.

Non-oil revenues to cover more than 90% of current spending

The deputy minister outlined the composition of the proposed 2027 budget, with current expenditures accounting for the largest share of government spending.

“Of the state budget expenditures for the coming year, 26.4 billion manats—or 62.3 percent—will be allocated to current expenditures; 13.8 billion manats—or 32.5 percent—to capital expenditures; and 2.2 billion manats—or 5.2 percent—to costs related to servicing the state debt. It is worth noting that, for 2027, 90.1 percent of current expenditures will be covered by receipts from the non-oil and gas sector. This represents an increase of 2.1 percentage points compared to 2026. Our target for 2030 is for current expenditures to be fully covered by non-oil revenues,” Mamishov said.

Under the proposed budget, current expenditures will amount to AZN 26.4 billion ($15.53 billion), representing 62.3% of total spending.

Capital expenditures are projected at AZN 13.8 billion ($8.12 billion), or 32.5% of the budget, while AZN 2.2 billion ($1.29 billion), equivalent to 5.2%, will be allocated to servicing public debt.

The government expects revenues from the non-oil and gas sector to finance 90.1% of current expenditures in 2027, compared with 88% in 2026.

The increase of 2.1 percentage points marks another step towards the government's medium-term objective of covering all current spending without relying on oil and gas revenues.