CBA: Medium-term macrofiscal framework provides adequate response to new strategic challenges

The macrofiscal framework presented for 2026 and the medium-term period provides an adequate response to new strategic challenges.

Report informs that this was stated by the Chairman of the Central Bank of Azerbaijan Taleh Kazimov during the discussion of the draft law "On the state budget for 2026" today at the plenary session of the Milli Majlis.

"Regarding the 2026 budget draft, overall, the CBA considers the macrofiscal framework presented for 2026 and the medium-term period optimal and effective in terms of macroeconomic stability and fiscal sustainability. It should be especially emphasized that the budget parameters have been prepared within the fiscal rule framework and budget expenditures are based on sustainable principles.

The reforms carried out in the fiscal sphere serve to strengthen the impact of the state budget on social welfare and economic activity.

At the same time, the macrofiscal framework for 2026 supports increasing the country's defense capabilities and continuing restoration and reintegration work in the liberated territories. The budget deficit of 2026 does not create inflation. This deficit is financed through domestic and external debt. Fiscal policy is not expected to have a significant impact on inflation. Overall, we positively assess the consolidated and state budgets for 2026," he noted.