BAKU, Azerbaijan, April 26. Last week, a number of key indicators were announced in Azerbaijan, and decisions were made in the financial and economic sphere. The execution of the state budget, the level of strategic foreign exchange reserves, changes in financial sector regulation, and steps toward international cooperation demonstrate the country’s continued macroeconomic stability.
State Budget and Fiscal Indicators
In the first quarter of 2026, state budget revenues amounted to approximately 9.6 billion manat ($5.64 billion), while expenditures totaled 7.8 billion manat ($4.58). This resulted in a surplus of 1.7 billion manat ($1 billion).
Tax revenues (49%) and transfers from the State Oil Fund (33.4%) account for the largest share of revenue. A positive trend in terms of economic diversification is the fact that the share of the non-oil and gas sector reached 57.7%. 73.7% of expenditures were allocated to current needs, while social expenditures accounted for 54.1% of total expenditures.
Public Debt and Reserves
As of April 1, 2026, external public debt stood at $4.7 billion (6.1% of GDP), while domestic debt amounted to 16.5 billion manat ($9.7 billion) (12.6% of GDP). These figures remain within the low-risk range according to international criteria.
The country’s strategic foreign exchange reserves reached $85.2 billion. Of this amount, $73.5 billion is held in the State Oil Fund, and $11.6 billion is held by the Central Bank.
Activities of the State Oil Fund
The assets of the State Oil Fund in the first quarter of this year amounted to $73.5 billion. In the first quarter, the fund’s revenues amounted to 3.18 billion manat ($1.8 billion), while expenditures totaled 3.22 billion manat ($1.9 billion). Although there was a slight decline in the investment portfolio due to market changes, total assets remain at a high level.
Regulation and Decisions in the Financial Sector
The Central Bank adopted a series of decisions to strengthen oversight of the financial sector. Consequently, the license of NBCI “Optimal Financing” was revoked for failure to meet capital requirements; new capital and liquidity requirements were introduced for investment companies; the “bonus-malus” system in compulsory auto insurance was abolished and a new mechanism based on insurance history was introduced, and the license of OJSC “Atasigorta” was suspended upon its voluntary request.
International Cooperation and Projects
Azerbaijan is expanding its cooperation with international financial institutions. Macroeconomic issues were discussed with the World Bank and the International Monetary Fund (IMF) during meetings held in the United States.
At the same time, preparations are underway for the annual meetings of the Islamic Development Bank Group, which will take place in Baku in June.
In the infrastructure sector, an international tender has been announced for a major project to modernize the Bilajari-Yalama railway line. It was noted that this project will contribute to the development of the North-South transport corridor.
Overall, the financial picture of the past week shows that Azerbaijan’s macroeconomic stability is being maintained, and the resilience of the financial system is strengthening. The main factors ensuring economic security are the budget surplus, high foreign exchange reserves, and low debt levels.