BAKU, Azerbaijan, April 15. Azerbaijan plans to gradually reduce transfers from the State Oil Fund (SOFAZ) to the state budget in the coming years as part of efforts to strengthen fiscal sustainability, Trend reports via the Ministry of Finance.
The total assets of the SOFAZ increased by 22.5% over the course of 2025 compared to the beginning of the year, reaching $73.5 billion, while the return on assets stood at 6.2%.
Despite favorable ratios of assets to gross domestic product (GDP) and debt indicators, a significant portion of budget revenues continues to be formed through transfers from the fund, accounting for 33.2% in 2026.
“Based on benchmark analysis, in oil-rich countries where sustainable transfers from sovereign funds are directed to the budget, such as Kazakhstan with 15% and Norway with 25%, this indicator remains at a lower level. In this regard, it is planned to gradually reduce transfers in the coming years and align annual transfer volumes with the level of the fund’s investment income, in line with best international practices,” the statement said.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel