Azerbaijani MP: Fiscal sustainability to strengthen next year

In Azerbaijan, the fact that non‑oil and gas revenues fully cover protected expenditures indicates that fiscal sustainability will continue to strengthen next year within the framework of budget consolidation, MP Vugar Bayramov said during the first reading of the draft law on the State Budget for 2026 at today's plenary meeting of the Milli Majlis, Report informs.

He stated that the budget draft has been prepared in accordance with the national priorities set by the Azerbaijani president:

"Next year, more than 12 billion manats will be directed toward strengthening our national security and restoring our liberated territories. Although nearly 30% of budget expenditures will go to these two areas, it will still be possible to allocate the necessary funds to other priority goals. For instance, more than 17 billion manats of next year's budget expenditures will be socially oriented. This means that for every 100 manats spent from the budget, 41 manats will be allocated to social purposes."

Bayramov emphasized that over the past 30 years, Azerbaijan's state budget has grown 50 times, while GDP per capita has risen from $300 in 1995 to $7,600 in 2025, marking a 25‑fold increase.

"According to the International Monetary Fund (IMF) assessments, Azerbaijan has achieved the strongest leap in GDP per capita among post‑socialist states over the past 30 years. Alongside strengthening economic stability, our country has deepened diversification reforms beyond oil revenues. In terms of diversification, the share of the non‑oil and gas sector in budget revenues has risen from 20% to 60% over the past decade. Today, 68% of GDP comes from the non‑oil and gas sector," he stressed.

Bayramov proposed that the impact of expenditure growth dynamics on economic growth and sectoral demand should be separately assessed, subsidy efficiency and allocation mechanisms improved, and experts invited to Cabinet discussions (a practice already applied at the Central Bank).

"The 2026 budget package stands out for two fundamental aspects. First, it will be the largest budget in the years of independence. Second, for the first time after the peak of energy revenues, nearly 58% of state budget revenues will come from the non‑oil and gas sector. This means the non‑resource sector is becoming not only the driver of GDP formation but also of fiscal revenues. This creates a strong financial base for dynamic economic development," he concluded.

(1$ = 1.70 AZN on November 19)