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.
