On October 15, President of the Republic of Azerbaijan Ilham Aliyev submitted the draft law on the “State Budget of the Republic of Azerbaijan for 2026” to the Milli Majlis of Azerbaijan, the Press and Public Relations Department of the Milli Majlis told APA.
The draft law, along with other attached documents, has been sent to the Chamber of Accounts for review. After receiving the Chamber’s opinion, discussions will take place in the Milli Majlis.
For 2026, state budget revenues are projected at AZN 38.609 billion. The share of the non-oil sector in the revenue structure is expected to increase significantly, further reducing the budget’s dependence on oil. It is forecasted that 57.4% of total revenues and 78.7% of tax revenues will come from non-oil sources.
Budget expenditures for the next year are set at AZN 41.7036 billion. These expenditures reflect the priorities determined by President Ilham Aliyev, including strengthening defense capabilities, ensuring social protection for the population, supporting entrepreneurship, implementing investment projects, and providing financial coverage for other essential state functions and responsibilities.
In the draft budget, the coverage of current expenditures by non-oil revenues is projected at 88.1%, which is 7.1 percentage points higher than the current year.
The state budget deficit is forecasted at AZN 3.0946 billion, equivalent to 2.3% of GDP.
Transfers from the State Oil Fund in 2026 are expected to decrease by AZN 1.646 billion compared to the current year, reflecting measures to reduce dependence on oil revenues and preserve foreign exchange reserves.
For the next year, the consolidated budget revenues are projected to increase by AZN 1.0188 billion, reaching AZN 44.9694 billion, while expenditures are expected to rise by AZN 1.2099 billion, totaling AZN 48.8393 billion, resulting in a deficit of AZN 3.87 billion.
The share of non-oil revenues in the consolidated budget for 2026 is projected at 63%, demonstrating the continued growth of the non-oil sector’s role in budget revenues in recent years. For comparison, the share was 43.9% in 2023, 52.4% in 2024, and 58.4% in 2025.
Overall, the 2026 state budget aims to ensure fiscal stability through steady growth in non-oil revenues and reduced reliance on oil, while aligning expenditures with socio-economic priorities and providing financial coverage for essential state functions.
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