Azerbaijan to cut non-oil fiscal deficit ratio to 19% in 2026

For the first time, Azerbaijan will reduce the ratio of the non-oil primary deficit of the consolidated budget to non-oil GDP to 19% next year, Finance Minister Sahil Babayev said during discussions on the 2026 state budget draft at the Parliamentary Committee on Economic Policy, Industry, and Entrepreneurship, Report informs.

He noted that Azerbaijan's non-oil primary deficit had remained above 20% for many years, with a 22.4% projection for 2025:

"In 2026, for the first time, we have managed to bring it down to 19%. This is a very serious and important dynamic," Babayev said.

The minister described this as a challenging yet necessary fiscal shift, adding that by 2029, the government aims to further lower the ratio to 13%. This, he said, will ensure that Azerbaijan maintains a sound, sustainable, and stable fiscal, macroeconomic, and monetary framework.

Babayev also highlighted that the share of non-oil revenues in the budget continues to grow:

"This year, 57% of revenues will come from the non-oil sector, compared to 53–54% previously. In the consolidated budget, this figure will reach 63% - a historic first for Azerbaijan."

According to the minister, the medium-term goal is to increase the share of non-oil revenues to 69%, further strengthening the country's fiscal resilience.