Azerbaijan’s budget deficit to drop to 2% of GDP by 2026

Azerbaijan’s state budget deficit is expected to decrease to 2% of GDP by 2026, according to the latest report by the Asian Development Bank (ADB), Report informs.

The deficit is projected at 2.4% of GDP in 2025.

“Budget revenues are forecast at 30% of GDP, with tax revenues accounting for 12%, non-tax revenues 7%, and transfers from the State Oil Fund of Azerbaijan (SOFAZ) contributing 11%,” the report states.

Government expenditures are expected to reach 32% of GDP, including 19% for current expenditures and 11% for capital investments.

Social protection and support spending is projected to increase by 8%, accounting for around 12% of total budget expenditures. Public investment is forecast to decline to 2% of GDP.

In 2024, Azerbaijan’s budget deficit stood at just 0.0004% of GDP, while in January–February 2025, the country posted a budget surplus of 7.2% of GDP.

N.Tebrizli