BAKU, Azerbaijan, April 26. Last week, a number
of key indicators were announced in Azerbaijan, and decisions were
made in the financial and economic sphere. The execution of the
state budget, the level of strategic foreign exchange reserves,
changes in financial sector regulation, and steps toward
international cooperation demonstrate the country’s continued
macroeconomic stability.


State Budget and Fiscal Indicators


In the first quarter of 2026, state budget revenues amounted to
approximately 9.6 billion manat ($5.64 billion), while expenditures
totaled 7.8 billion manat ($4.58). This resulted in a surplus of
1.7 billion manat ($1 billion).


Tax revenues (49%) and transfers from the State Oil Fund (33.4%)
account for the largest share of revenue. A positive trend in terms
of economic diversification is the fact that the share of the
non-oil and gas sector reached 57.7%. 73.7% of expenditures were
allocated to current needs, while social expenditures accounted for
54.1% of total expenditures.


Public Debt and Reserves


As of April 1, 2026, external public debt stood at $4.7 billion
(6.1% of GDP), while domestic debt amounted to 16.5 billion manat
($9.7 billion) (12.6% of GDP). These figures remain within the
low-risk range according to international criteria.


The country’s strategic foreign exchange reserves reached $85.2
billion. Of this amount, $73.5 billion is held in the State Oil
Fund, and $11.6 billion is held by the Central Bank.


Activities of the State Oil Fund


The assets of the State Oil Fund in the first quarter of this
year amounted to $73.5 billion. In the first quarter, the fund’s
revenues amounted to 3.18 billion manat ($1.8 billion), while
expenditures totaled 3.22 billion manat ($1.9 billion). Although
there was a slight decline in the investment portfolio due to
market changes, total assets remain at a high level.







Regulation and Decisions in the Financial
Sector


The Central Bank adopted a series of decisions to strengthen
oversight of the financial sector. Consequently, the license of
NBCI “Optimal Financing” was revoked for failure to meet capital
requirements; new capital and liquidity requirements were
introduced for investment companies; the “bonus-malus” system in
compulsory auto insurance was abolished and a new mechanism based
on insurance history was introduced, and the license of OJSC
“Atasigorta” was suspended upon its voluntary request.


International Cooperation and Projects


Azerbaijan is expanding its cooperation with international
financial institutions. Macroeconomic issues were discussed with
the World Bank and the International Monetary Fund (IMF) during
meetings held in the United States.


At the same time, preparations are underway for the annual
meetings of the Islamic Development Bank Group, which will take
place in Baku in June.


In the infrastructure sector, an international tender has been
announced for a major project to modernize the Bilajari-Yalama
railway line. It was noted that this project will contribute to the
development of the North-South transport corridor.


Overall, the financial picture of the past week shows that
Azerbaijan’s macroeconomic stability is being maintained, and the
resilience of the financial system is strengthening. The main
factors ensuring economic security are the budget surplus, high
foreign exchange reserves, and low debt levels.