BAKU, Azerbaijan, November 15. Azerbaijan plans to allocate 150 million manat ($88.2 million) from the state budget in 2027 to finance its share of the charter capital of international investment and development funds it co-founded within the framework of capital investment expenditures.
According to the opinion issued by the Chamber of Accounts on the draft law on the state budget for 2027, the draft envisages funding for several other investment areas in addition to allocations for projects included in the state investment program, according to the opinion of the Chamber of Accounts. One of these areas involves expenses related to Azerbaijan's share in the charter capital of international investment and development funds it co-founded.
Other areas also account for significant share of capital investment
According to data provided by the Chamber of Accounts, in 2027, funding is also planned for other special-purpose and economically significant projects, alongside international investment and development funds.
Specifically, 709 million manat ($417 million) is earmarked for special-purpose projects, 434 million manat ($255 million) for the reconstruction of the Heydar Aliyev Oil Refinery, and 41 million manat ($24.1 million) for tourism development.
In addition, over 2.46 billion manat ($1.45 billion) is earmarked for construction, restoration, reconstruction, and major repairs, various capital purchases, and other projects undertaken by budget-funded and financially supported organizations.
Thus, along with the funds planned for financing projects included in the state investment program, total capital investment of 3.8 billion manat ($2.24 billion) is projected for the above-mentioned areas.
Infrastructure projects to account for largest share of investment spending
The Chamber of Accounts' opinion also provided a breakdown of other state capital investment expenditures by area for 2027.
According to the data presented, over 3.19 billion manat ($1.88 billion) is planned to be allocated to infrastructure-oriented projects next year, accounting for 60.3% of the relevant expenditures.
Over 1.72 billion manat ($1.01 billion), or 32.6%, is projected for social-oriented projects, while 281.4 million manat ($165.5 million), or 5.1%, is earmarked for projects related to defense and law enforcement agencies, and 96.4 million manat ($56.7 million), or 1.8%, for other projects.
According to the chamber’s assessment, the upcoming fiscal year is expected to see an increase in funding allocated to infrastructure and socially-oriented projects, alongside a decrease in funding for other types of projects. Infrastructure projects will continue to account for the largest share, remaining the primary focus of state capital investments.
The opinion further noted that, although medium-term budget forecasts anticipate a decline in overall investment expenditures, including those related to the reconstruction and restoration of the territories liberated from occupation, total spending in this category is projected to rise, driven by a steady increase in other forms of capital investment.
The Chamber of Accounts has also highlighted the limited availability of data regarding the distribution of projects by category, noting that the absence of detailed information on individual projects hinders comparative analysis with previous years and complicates a more comprehensive assessment of expenditures.
Thus, the allocation of 150 million manat in Azerbaijan’s 2027 state budget to finance participation in international investment and development funds serves as a significant component of the country’s investment-related expenditures. It’s also planned to direct the bulk of the budgetary funds toward infrastructure and socially-oriented projects.
