Baku: Azerbaijan’s President Ilham Aliyev has presented the draft 2026 State Budget to the Milli Majlis, aiming to boost non-oil sector contributions to national revenue. The Press and Public Relations Department of the Milli Majlis confirmed that the draft law, including related documents, has been forwarded to the Chamber of Accounts for evaluation. Following the Chamber’s review, the draft will be discussed in the Milli Majlis.
According to Azeri-Press news agency, the budget proposal projects state revenues of AZN 38.609 billion for 2026, with a significant focus on increasing the share of the non-oil sector. The forecast suggests that 57.4% of total revenues and 78.7% of tax revenues will be derived from non-oil sources, marking a strategic shift away from oil dependence.
The proposed budget sets expenditures at AZN 41.7036 billion, prioritizing defense strengthening, social protection, entrepreneurship support, investment project implementation, and essential state functions. The coverage of current expenditures by non-oil revenues is expected to hit 88.1%, up by 7.1 percentage points from the current year.
The budget deficit is anticipated to reach AZN 3.0946 billion, or 2.3% of GDP. A marked reduction in State Oil Fund transfers by AZN 1.646 billion is planned for 2026, aligning with efforts to reduce oil revenue reliance and preserve foreign exchange reserves.
Consolidated budget projections for 2026 include revenues of AZN 44.9694 billion, an increase of AZN 1.0188 billion, and expenditures of AZN 48.8393 billion, up by AZN 1.2099 billion, leading to a deficit of AZN 3.87 billion. The non-oil sector’s revenue share is expected to rise to 63%, reflecting ongoing growth from 43.9% in 2023 to 58.4% in 2025.
Overall, the 2026 budget aims to maintain fiscal stability by enhancing non-oil revenue growth and aligning expenditures with socio-economic priorities, ensuring adequate financial support for essential state functions.