BAKU, Azerbaijan, October 17. President of the Republic of Azerbaijan Ilham Aliyev submitted the draft law “On the State Budget of the Republic of Azerbaijan for 2026” to the Parliament for discussion on October 15, the parliamentary press service told Trend.
The draft budget, along with related documents, has been sent to the Chamber of Accounts for review. Once the Chamber’s opinion is received, the discussions will be held in Parliament.
The draft budget envisions revenues of about 38.6 billion manat ($22.7 billion), with a significant increase in the share of the non-oil sector. This marks another step in reducing the country’s dependence on oil revenues, as 57.4 percent of total income and nearly 78.7 percent of tax revenues are expected to come from non-oil sources.
Budget expenditures are projected at approximately 41.7 billion manat ($24.5 billion), reflecting President Ilham Aliyev’s identified priorities, including defense capacity, social protection, business support, investment projects, and other essential state functions.
The draft also notes that the payment capacity of non-oil revenues (88.1 percent) to cover current expenses will rise compared to this year, signaling 7.1 percentage points of improved fiscal sustainability. The budget deficit is estimated at 3.9 billion manat ($2.2 billion), equivalent to 2.3 percent of gross domestic product (GDP).
Transfers from the State Oil Fund are projected to decline by 1.64 billion manat ($964.7 million), demonstrating efforts to safeguard foreign exchange reserves and reduce reliance on oil income.
For the next year, consolidated budget revenues are projected to rise by more than one billion manats, reaching nearly 45 billion manat ($26.4 billion), while expenditures are expected to grow by about 1.2 billion manats ($705.8 million) to almost 49 billion manat ($28.8 billion). The deficit is set at close to 3.9 billion manat ($2.2 billion).
The share of non-oil revenues in the 2026 consolidated budget is forecast at 63 percent, reflecting a consistent expansion of the non-oil sector’s contribution to state finances. By comparison, this share stood at around 44 percent in 2023, 52 percent in 2024, and 58 percent in 2025.
Overall, the 2026 state budget is designed to reinforce fiscal stability by boosting non-oil revenues and further reducing dependence on oil income. It prioritizes spending aligned with the country’s social and economic goals while ensuring adequate financial support for essential state functions.
The full text of the draft law is available here.
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