BAKU, Azerbaijan, June 12. The financial dependence of regions on the central budget has decreased in Azerbaijan, Finance Minister Sahil Babayev said during the discussion of the draft law "On the execution of the state budget of Azerbaijan for 2025 at today's meeting of the parliament, Trend's correspondent reports from the event.
According to him, last year, local budget revenues amounted to 873 million manat ($513.5 million), exceeding the forecast by 79 million manat ($46.5 million), while local budget expenditures totaled 717 million manat ($421.8 million).
The minister noted that reducing the regions' financial dependence on the central budget was also among the positive results achieved in 2025.
"The subsidy allocated to the Nakhchivan Autonomous Republic decreased by 25.2 million manat ($14.8 million), or 13.6%, compared to the previous year. The growing number of cities and districts financing their expenditures through local revenues demonstrates the strengthening economic and financial potential of the regions. As a result, last year the state budget was executed with a surplus thanks to revenue overperformance by fiscal authorities and the efficient implementation of budget expenditures," he explained.
Babayev added that consolidated budget revenues totaled 48 billion manat ($28.2 billion) in 2025, while expenditures amounted to 44.6 billion manat ($26.2 billion), resulting in a consolidated budget surplus as well.
Emphasizing that significant achievements were made in maintaining macroeconomic stability, increasing state revenues, expanding the non-oil sector, ensuring debt sustainability, and financing social obligations in 2025, the minister also outlined priorities for the coming period.
"The main goal is to consolidate the positive results achieved, accelerate the growth of non-oil revenues, improve the efficiency of public spending, and further enhance the results-oriented nature of the budget system. We are confident that the targeted economic and fiscal policies being implemented will strengthen our country's financial sustainability, improve public welfare, and contribute to achieving our development goals," the minister said.
Babayev pointed out that, during the reporting year, 504 million manat ($296.5 million) was spent on financing measures aimed at ensuring food security through state financial support for agricultural producers, which was 18.5 million manat ($10.9 million), or 3.8%, more than in 2024.
"Last year, a total of 100 million manat ($58.8 million) was allocated, including 85 million manat ($50 million) for concessional mortgage lending and 15 million manat ($8.8 million) to finance subsidies on interest accrued on manat-denominated loans received by business entities. During the reporting year, 968 million manat ($569.4 million) was allocated from the state budget to 44 public legal entities established on behalf of the state and operating under state orders to finance their activities and services. In 2025, 7.6 billion manat ($4.5 billion), or 19.6% of total budget expenditures, was allocated for economic activity-related spending. Of this amount, 2.3 billion manat ($1.4 billion) was directed toward the implementation of investment projects," he added.
Babayev also emphasized that of the investment expenditures, 1.7 billion manat ($1 billion) was allocated to infrastructure projects, 303 million manat ($178.2 million) to social sector facilities, and 98 million manat ($57.6 million) to the construction, reconstruction, and major renovation of facilities related to defense, the judiciary, law enforcement, and other sectors.
He noted that in 2025, the financial resources required to implement the country's socio-economic development priorities and other necessary expenditures were provided in full and on time.
According to the minister, state budget expenditures in 2025 were executed at 38.6 billion manat ($22.7 billion), or 93.2% of the forecast, which was 891 million manat ($524.1 million), or 2.4%, more than in 2024.
"Overall, over the past five years, state budget expenditures have increased by 11.2 billion manat ($6.6 billion), or 41%. By structure, 22.1 billion manat ($13 billion), or 57.3%, of state budget expenditures were allocated to current spending, 14.4 billion manat ($8.5 billion), or 37.3%, to capital expenditures, and 2.1 billion manat ($1.2 billion), or 5.4%, to servicing public debt and obligations," Babayev noted.
The minister stressed that 92% of the 22.1 billion manat ($13 billion) in current expenditures executed during the reporting year, or 20.4 billion manat ($12 billion), was financed through revenues generated by the non-oil and gas sector.
