BAKU, Azerbaijan, August 7. The share of the non-oil and gas sector in Azerbaijan’s state budget revenues reached 57.3% in the first half of 2026.
This was announced by the Ministry of Finance in its latest report on the execution of the state and consolidated budgets for the period from January through June 2026.
According to the report, the increased share of the non-oil sector demonstrates its growing role in generating budget revenues compared with previous years. At the same time, the ratio of the consolidated budget’s non-oil primary deficit to non-oil gross domestic product (GDP) declined to 17.5% as of the end of June 2026, indicating stronger fiscal sustainability.
The report indicates that state budget revenues amounted to 19.1 billion manat ($11.28 billion) in the period from January through June 2026, while actual spending from allocated budget funds totaled 16.7 billion manat ($9.86 billion). The number of payment orders processed for expenditure execution reached 624,100.
In addition, interest income of 27 million manat ($15.8 million) was generated through active management of the unified treasury account balance. These revenues were generated solely from funds placed in foreign currency.
The ministry also noted that refunds under the “VAT Refund” project continued during the reporting period. A total of 153.2 million manat ($90.1 million) was refunded in value-added tax payments. Meanwhile, 154.6 million manat ($90.9 million) was returned to individuals and legal entities, while refunds related to state duties amounted to 1.4 million manat ($823,529).
Earlier, the Minister of Finance, Sahil Babayev, declared during the discussion of the draft law "On the implementation of the state budget of Azerbaijan for 2025" at a session of the parliament that in recent years, consistent reforms carried out in the country have ensured the sustainable development of the non-oil sector. According to him, during the reporting period, GDP in the non-oil and gas sector amounted to 92.3 billion manat ($54.3 billion), accounting for 71.5% of total GDP, representing 2.7% real growth compared to 2024," he explained.
The minister noted that the share of non-oil revenues in the consolidated budget reached 55.2%, and the share of non-oil taxes reached 25%. He emphasized that the share of non-oil revenues of the state budget in total revenues has increased from 43.3% to 52% in the last 5 years, and it's planned to increase the share of non-oil revenues to 57.4% in the 2026 state budget.
"The dynamics of the mentioned figures show that the development of the non-oil sector and reducing the dependence of the state budget on oil revenues are one of the main priorities of the state. Measures are being continuously implemented to increase revenues in the non-oil sector and diversify their sources, and the issue is constantly being monitored," Babayev added.
