BAKU, Azerbaijan, September 16. Transfers from Azerbaijan’s State Oil Fund (SOFAZ) to the state budget are expected to be gradually reduced in the coming years.
This is reflected in the Statement on the Initial Indicators of the State and Consolidated Budgets for 2027 released by Azerbaijan’s Ministry of Finance.
According to the State Budget Parameters for 2027 and the Following Three Years included in the statement, SOFAZ is projected to transfer 11.9 billion manat ($7 billion) to the state budget in 2027. This is 935 million manat ($550 million) less than the 12.835 billion manat ($7.55 billion) transfer approved for 2026.
The volume of transfers from SOFAZ to the state budget is also expected to decline in subsequent years. The transfer is projected at 11.05 billion manat ($6.5 billion) in 2028, 10.2 billion manat ($6 billion) in 2029 and 9.35 billion manat ($5.5 billion) in 2030.
Thus, compared with the amount approved for 2026, transfers from SOFAZ to the state budget are expected to decline by 3.485 billion manat ($2.05 billion), or about 27.2 percent, by 2030.
At the same time, total state budget revenues are projected to increase in the coming years. State budget revenues are expected to reach 39.234 billion manat ($23.079 billion) in 2027, 39.478 billion manat ($23.222 billion) in 2028, 39.9369 billion manat ($23.492 billion) in 2029 and 40.577 billion manat ($23.869 billion) in 2030.
According to the forecasts, non-oil and gas revenues are expected to increase as oil and gas revenues and transfers from SOFAZ decline. Non-oil and gas revenues are projected at 23.754 billion manat ($13.973 billion) in 2027, 25.288 billion manat ($14.875 billion) in 2028, 26.7269 billion manat ($15.722 billion) in 2029 and 28.337 billion manat ($16.669 billion) in 2030.
Meanwhile, state budget spending is expected to amount to 42.4 billion manat ($24.941 billion) in 2027, 42.82 billion manat ($25.188 billion) in 2028, 43.491 billion manat ($25.583 billion) in 2029 and 44.2365 billion manat ($26.021 billion) in 2030.
