by Mazahir Afandiyev, Member of Milli Majlis
(Parliament)
The draft Law “On the State Budget of the Republic of Azerbaijan
for 2026” is currently being widely discussed in the Milli Majlis.
The real economic indicators and financial justifications presented
by the Minister of Finance and the Chairman of the Chamber of
Accounts provide grounds to say that the state budget will be used
efficiently next year. As most members of parliament have noted,
the budget package submitted to the Milli Majlis for 2026 reflects
strengthened principles of transparency and flexibility in
governance, as well as an institutional approach in budget
policy.
The fact that this year’s budget discussions coincide with the
“Year of the Constitution and Sovereignty” also gives special
significance to the deliberations on the draft law.
It should be noted that the revenues of the 2026 state budget
are projected at 38 billion 609 million manats, while expenditures
are forecast at 41 billion 703 million manats.
Overall, 2025 is characterized by the weakening of the global
economy and sluggish international trade against the background of
rising geopolitical and geoeconomic tensions worldwide. Despite all
this, positive dynamics have been observed in Azerbaijan’s
macroeconomic environment: economic growth has continued, progress
has been maintained in diversifying the economy, expanding non-oil
and non-gas exports, and improving the business environment. As a
result, Azerbaijan’s strategic foreign currency reserves have
already reached 82.5 billion USD, while the country’s external
public debt has dropped to only 6% of GDP.
It should be especially emphasized that President Ilham Aliyev’s
instructions on developing the non-oil sector and gradually
reducing dependence on oil in budget policy have been consistently
implemented, producing notable results. This policy is a critical
strategic line for ensuring Azerbaijan’s long-term economic
security.
It is no coincidence that in recent years, efforts toward
developing and diversifying the non-oil sector have expanded
significantly, and today, the process of replacing oil revenues in
the state budget is being carried out with great precision.
Figures presented by the Ministry of Finance also show that
dependence on oil revenues will continue to decrease in the 2026
budget. For example, the transfer from the State Oil Fund to the
state budget will be 1 billion 646 million manats (11.4%) less than
in 2025. This reduction demonstrates not only the growth of the
non-oil sector but also the tangible results of efforts to
diversify budget revenues.
The foundation of these achievements lies in the farsighted
decision of the National Leader Heydar Aliyev to establish the
State Oil Fund under his decree dated 29 December 1999. This
strategic step ensured the efficient use of oil revenues and helped
create an important financial reserve for future generations.
Today, the Fund’s assets play a decisive role in ensuring the
country’s financial security.
One of the most inspiring aspects of the 2026 state budget for
every Azerbaijani is the allocation of funds for the reconstruction
and rehabilitation of the liberated territories, the rapid
integration of the resurgent Karabakh and Eastern Zangezur economic
regions into the national economy, and the demonstration of
substantial progress in securing sustainable financial support for
these processes.
It is no secret that the Washington Declaration, signed
trilaterally in the United States on 8 August this year, brought
the prospect of lasting peace in the South Caucasus even closer.
This, in turn, dictates the allocation of operational funds to
ensure the Great Return to the liberated territories, the
rebuilding of cities and villages, the creation of modern
infrastructure in these areas, as well as to guarantee border
protection, ensure the Azerbaijani Army’s readiness for any
threats, and maintain peace and security.
For this purpose, the 2026 state budget envisages 3 billion 500
million manats for the reconstruction and restoration of the
liberated territories, and nearly 8 billion 715 million manats for
defense, national security, judicial authorities, and
law-enforcement agencies.
At the same time, it should be noted that in today’s world,
where global competition is rapidly increasing, the sustainability
of peace and the future development of nations are directly linked
to digitalization. In this regard, the inclusion of priorities
aligned with the challenges of the Fourth Industrial Revolution in
the 2026 state budget is particularly important.
It is commendable that the budget allocates funding for measures
under the “Artificial Intelligence Strategy of the Republic of
Azerbaijan for 2025–2028” and the “Information and Cybersecurity
Strategy of the Republic of Azerbaijan for 2023–2030.” These
programs will ensure Azerbaijan’s transition to a new stage of
digital transformation, facilitate the formation of an innovative
economy, and strengthen institutional measures in the field of
cybersecurity.
Azerbaijan’s advances in artificial intelligence, automation,
and high technologies will enhance efficiency in public
administration and increase the competitiveness of the private
sector.
A crucial factor behind these achievements is the government’s
effective execution of global challenges within the framework of
efficient state governance. For many years, Azerbaijan has
established reliable partnerships with international
organizations—particularly the United Nations—based on principles
of mutual respect and cooperation. The Sustainable Development
Goals (SDGs), adopted unanimously by all UN member states in 2015,
have long been implemented at a high level in Azerbaijan and have
become one of the key components of the country’s strategic
development course.
The Milli Majlis of the Republic of Azerbaijan, within its
cooperation with the Chamber of Accounts, also pays attention to
the implementation of SDG goals. The inclusion of SDGs in the
Chamber’s opinion on the state budget document for the first time
in 2023 is considered an important milestone. Starting from 2024,
the preparation of the Medium-Term Expenditure Framework (MTEF)
within the context of reforms carried out for the implementation of
SDGs has been underway.
The 2026 state budget is noteworthy in this regard as well. More
than 15 billion manats allocated to the sectors of education,
agriculture, environmental protection, and social welfare and
social security are associated with eight SDG goals in total. This
is a clear example of Azerbaijan’s consistent policy aimed at
improving social welfare, strengthening environmental security, and
ensuring inclusive development.
Thus, the state budget of the Republic of Azerbaijan for 2026 is
a document shaped in accordance with real economic conditions,
national priorities, and long-term development strategy. Particular
attention is drawn to areas such as reducing dependence on oil in
the budget structure, supporting the non-oil sector, expanding
social welfare programs, and financing high-tech fields.
Ensuring the sensitive execution of monetary and fiscal policies
and maintaining macroeconomic stability remain among the key
priorities in forming the state budget. In the current reality,
this is considered one of the crucial conditions for securing the
resilience of the national economy.
