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Azerbaijan is expected to see a decline in extra-budgetary revenues next year, while changes to the legislation governing the generation and use of these funds are also needed.

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, extra-budgetary revenues of budgetary organizations are projected to reach AZN 949 million in 2027, down AZN 72 million, or 7.1%, compared with the 2026 forecast.

The share of extra-budgetary revenues in total state budget revenues is also expected to decrease by 0.2 percentage points year-on-year, reaching 2.4%.

Revenues generated by budgetary organizations through the provision of goods and services, product sales and other activities are projected across nine revenue sources in 2027. Growth is expected in only two of these categories, while the remaining seven are forecast to decline.

The Chamber's assessment indicates that the largest increase compared with the current year is expected in revenues from financial sanctions, administrative fines and the portions of tax revenues allocated by law to extra-budgetary funds.

In particular, receipts from the portion of financial sanctions imposed by tax authorities that is legally allocated to extra-budgetary revenues are projected to reach AZN 297 million in 2027. This represents an increase of AZN 35 million compared with 2026.

The Chamber of Accounts also examined the methodology used to forecast extra-budgetary revenues, as well as the key provisions of the relevant legal acts governing these funds.

Its assessment states that the analysis conducted has demonstrated the need to amend legislation governing extra-budgetary operations.

The approaches used to forecast extra-budgetary revenues and the relevant legal framework are discussed in detail in Sections II and VII of the Chamber's assessment.