BAKU, Azerbaijan, November 14. Azerbaijan's net financial assets totaled 109.88 billion manat ($64.6 billion) as of October 1, 2026, up 13.4%, or 12.95 billion manat ($7.6 billion), compared with the same period last year.
According to the Chamber of Accounts' opinion on the draft law "On the state budget of the Republic of Azerbaijan for 2027," the increase in net financial assets was driven by both an increase in financial assets and a decrease in financial liabilities.
Thus, as of October 1, 2026, financial assets rose by 9.3%, or 11.43 billion manat ($6.7 billion), compared with the same period last year, reaching 133.77 billion manat ($78.7 billion). Financial liabilities decreased by 6%, or 1.52 billion manat ($895 million), to over 23.89 billion manat ($14.1 billion).
The increase in the assets of the State Oil Fund of Azerbaijan (SOFAZ) accounted for the largest share of the growth in financial assets.
During the reporting period, SOFAZ's assets increased by 10.2%, or 11.62 billion manat ($6.8 billion). The Chamber of Accounts attributed this growth mainly to rising gold prices in Q4 2025, a significant increase in crude oil prices starting in March 2026, high returns on the fund's benchmark stock index, and a reduction in transfers to the state budget.
The document noted that, in some cases, the calculation of SOFAZ's asset balance isn't based on the cash method.
The other component of net financial assets, the balance of the Single Treasury Account, decreased by 189.4 million manat ($111.4 million) during the reporting period.
The Chamber of Accounts identified certain discrepancies in the calculation of this indicator. An analysis of the Single Treasury Account balance, state budget cash execution, and domestic government debt transactions indicates the need to clarify the relevant figure and bring it into line with the requirements of the law "On the budget system."
The opinion noted that, as of October 1, 2026, about 1.25 billion manat ($733.3 million) was allocated from the Single Treasury Account balance to reduce domestic debt. However, the explanatory note on the calculation of net financial assets overstated the Single Treasury Account balance by this amount.
Furthermore, the explanatory note put the Single Treasury Account balance at 7.67 billion manat ($4.5 billion) and funds transferred for management at 224 million manat ($131.8 million). However, Appendix No. 22 on state budget execution showed the total figure, including the 224 million manat transferred for management, at over 8.4 billion manat ($4.96 billion).
The chamber noted that the "Budget Package" includes amendments to the law "On the budget system," specifically the removal of the phrase "funds from the Single Treasury Account placed under management" from the constituent elements of net financial assets.
In its previous opinions, the Chamber of Accounts had already highlighted issues that lead to double counting when calculating net financial assets. In particular, the chamber emphasized that simultaneously accounting for the balance of the Single Treasury Account and the funds from that account placed under management creates a risk of double counting.
The opinion also addressed another component of net financial assets: the amount falling due in the current year for the servicing of obligations owed by state-owned enterprises to the state budget. The document noted that this component encompasses funds paid on behalf of the primary borrower, which are subsequently subject to reimbursement.
Previous opinions from the Chamber of Accounts, as well as observations made during the preparation of the 2027 "Budget Package", had pointed to the existence of double counting regarding this component as well. According to the chamber, this discrepancy has been resolved during the drafting of the current budget package.
Thus, the primary factors contributing to the growth of Azerbaijan's net financial assets during the reporting period were an increase in the assets of the State Oil Fund and a reduction in the state's financial liabilities. At the same time, the Chamber of Accounts noted the need to refine certain indicators used in the calculation of net financial assets and to eliminate the risks of double counting.
