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AzerNEWS Staff

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Azerbaijan's revenue and expenditure forecasts for the 2027 state budget have undergone significant revisions compared with projections included in budget packages prepared in previous years.

This is stated in the Chamber of Accounts' assessment of the draft law "On the State Budget of the Republic of Azerbaijan for 2027."

According to the document, the parameters of the 2027 state budget were projected four times in budget packages covering the 2024–2026 period. Three of these projections were included in the initial budget packages for the respective years, while another was presented during the revision of the 2024 state budget.

The Chamber of Accounts' analysis found differences between the revenue and expenditure forecasts for 2027 contained in previous budget packages and those presented in the current draft.

Specifically, compared with earlier projections, revenue estimates in the 2027 budget package were revised by between AZN 0.1 billion and AZN 2.2 billion, while expenditure forecasts changed by between AZN 0.2 billion and AZN 2.7 billion. These adjustments also affected the projected state budget deficit in different years.

The Chamber noted that differences between forecasts for the same year presented in successive budget packages have gradually narrowed.

According to the analysis, approximately 77.9% of the AZN 2.7 billion change in state budget expenditure compared with the 2024 budget package was attributable to the "Defence and National Security" category.

Changes in other sectors covered by the Medium-Term Expenditure Framework (MTEF) were relatively limited.

Under the 2027 budget package, expenditure on education is projected to be 7.3% lower than in the 2024 budget package. Meanwhile, allocations for agriculture are projected to increase by 20.4%, while spending on environmental protection is set to rise by 6.9%.