BAKU, Azerbaijan, July 27. Azerbaijan's state
budget revenues totaled 19.179 billion manats ($11.28 billion),
while expenditures reached 16.776 billion manats ($9.87 billion) in
the first six months of 2026, resulting in a budget surplus of
2.404 billion manats ($1.41 billion), the country's Finance
Ministry said.
According to the ministry, state budget revenues exceeded the
forecast of 18.829 billion manats ($11.07 billion) by 350.3 million
manats ($206.1 million), or 1.9%, representing 49.7% of the annual
revenue target for 2026.
Excluding transfers from the State Oil Fund of the Republic of
Azerbaijan (SOFAZ), state budget revenues amounted to 12.759
billion manats ($7.51 billion), exceeding the forecast by 2.8%.
Tax revenues accounted for 8.843 billion manats ($5.20 billion),
or 46.1%, of total budget revenues. Transfers from SOFAZ totaled
6.420 billion manats ($3.78 billion), or 33.5%, while customs
revenues reached 3.144 billion manats ($1.85 billion), or 16.4%.
Revenues from paid services provided by state-funded organizations
amounted to 350.7 million manats ($206.4 million), income from
leasing state property reached 28.2 million manats ($16.6 million),
and other revenues totaled 394 million manats ($231.8 million).
Compared with budget projections, tax revenues exceeded the
target by 217.7 million manats ($128.1 million), customs revenues
by 10.4 million manats ($6.1 million), income from leasing state
property by 5.5 million manats ($3.2 million), and other revenues
by 246.2 million manats ($144.8 million). Revenues from paid
services of state-funded organizations fell short of the forecast
by 108.7 million manats ($63.9 million), while SOFAZ transfers were
executed as planned.
Compared with the first half of 2025, tax revenues increased by
139 million manats ($81.8 million), customs revenues by 52.5
million manats ($30.9 million), leasing income by 6.3 million
manats ($3.7 million), and revenues from paid services by 38.6
million manats ($22.7 million).
Non-oil and gas revenues reached 10.981 billion manats ($6.46
billion), accounting for 57.3% of total budget revenues, up 5.4
percentage points from a year earlier. The figure exceeded the
forecast by 329.1 million manats ($193.6 million) and was 703.8
million manats ($413.9 million) higher than in the first half of
2025.
Within non-oil and gas revenues, tax receipts accounted for
7.065 billion manats ($4.16 billion), customs revenues for 3.144
billion manats ($1.85 billion), paid services by state-funded
organizations for 350.7 million manats ($206.4 million), other
revenues for 394 million manats ($231.8 million), and leasing state
property for 28.2 million manats ($16.6 million).
Oil and gas revenues totaled 8.198 billion manats ($4.82
billion), exceeding the forecast by 21.2 million manats ($12.5
million).
Of total oil and gas revenues, 1.778 billion manats ($1.05
billion), or 21.7%, came from tax receipts, while 6.420 billion
manats ($3.78 billion), or 78.3%, consisted of transfers from
SOFAZ.
Of oil and gas tax revenues, 843.5 million manats ($496.2
million), or 47.4%, came from taxes paid by the State Oil Company
of the Azerbaijan Republic (SOCAR), 730.4 million manats ($429.6
million), or 41.1%, from profit tax on the Shah Deniz field, and
204.3 million manats ($120.2 million), or 11.5%, from profit tax
paid by the Azerbaijan International Operating Company (AIOC).
Budget expenditures
The Finance Ministry said all priority state obligations,
including wages, pensions, social benefits, reconstruction of
territories liberated from occupation, government programs, debt
servicing, and other essential expenditures, were fully and
promptly financed during the reporting period.
State budget expenditures totaled 16.776 billion manats ($9.87
billion) in the first half of 2026, representing 40.2% of the
annual expenditure plan.
Current expenditures amounted to 11.643 billion manats ($6.85
billion), or 69.4% of total spending, capital expenditures reached
4.188 billion manats ($2.46 billion), or 25%, and debt servicing
expenditures totaled 944.8 million manats ($555.8 million), or
5.6%.
Socially oriented expenditures accounted for 8.787 billion
manats ($5.17 billion), or 52.4% of total spending, up 951.3
million manats ($559.6 million), or 12.1%, compared with the same
period of 2025.
By functional classification, spending included:
Defense and national security: 3.437 billion manats ($2.02
billion)
Economic activity: 2.578 billion manats ($1.52 billion)
Education: 2.400 billion manats ($1.41 billion)
Social protection and security: 2.360 billion manats ($1.39
billion)
General public services: 2.340 billion manats ($1.38
billion)
Judiciary, law enforcement and prosecution: 1.404 billion manats
($825.7 million)
Other services: 669.4 million manats ($393.8 million)
Healthcare: 591.6 million manats ($348 million)
Agriculture: 527.3 million manats ($310.2 million)
Culture, arts, information, sports and youth policy: 217.9
million manats ($128.2 million)
Environmental protection: 147 million manats ($86.5 million)
Housing and utilities: 103.8 million manats ($61.1 million)
By economic classification, spending included:
Wages: 5.609 billion manats ($3.30 billion)
Non-financial assets: 3.983 billion manats ($2.34 billion)
Procurement of goods and services: 2.325 billion manats ($1.37
billion)
Grants and other payments: 1.600 billion manats ($941
million)
Social payments: 1.643 billion manats ($967 million)
Operations on liabilities: 494.2 million manats ($290.7
million)
Subsidies: 483.2 million manats ($284.2 million)
Interest payments: 467.4 million manats ($275 million)
Financial asset operations: 139.3 million manats ($81.9
million)
Mandatory state personal insurance: 32.3 million manats ($19
million)
Capital investment spending financed 810.2 million manats
($476.6 million), representing 30% of the annual allocation.
A total of 1.064 billion manats ($626 million), or 30.4% of the
annual allocation, was spent on reconstruction and restoration
projects in the territories liberated from occupation.
Of that amount, 974.1 million manats ($572.9 million) was
allocated to infrastructure projects, including roads, residential
construction, tourism infrastructure, cable cars in Shusha,
Khankendi, and Lachin, electricity supply, water infrastructure,
and industrial parks. Another 29.8 million manats ($17.5 million)
financed healthcare and cultural projects, 45.3 million manats
($26.6 million) was allocated for mine clearance, and 14.9 million
manats ($8.8 million) was spent on defense and law enforcement
facilities.
During the reporting period, 144.5 million manats ($85 million)
was allocated from reserve funds, including 23.5 million manats
($13.8 million) from the presidential reserve fund and 121 million
manats ($71.2 million) from the state budget reserve fund.
Public debt
The 2026 state budget earmarked 2.458 billion manats ($1.45
billion) for servicing public debt and related obligations.
In the first half of the year, Azerbaijan spent 944.8 million
manats ($555.8 million) on debt servicing, including 275.9 million
manats ($162.3 million) in interest payments on domestic debt and
668.9 million manats ($393.5 million) on external debt, comprising
494.2 million manats ($290.7 million) in principal repayments and
174.7 million manats ($102.8 million) in interest payments.
As of July 1, 2026, Azerbaijan's external public debt stood at
$4.617 billion, equivalent to 6% of projected GDP for the year.
Domestic public debt totaled 15.982 billion manats ($9.40
billion), or 12.2% of projected GDP.
Consolidated budget
In the first half of 2026, consolidated budget revenues amounted
to 24.414 billion manats ($14.36 billion), while expenditures
totaled 19.824 billion manats ($11.66 billion), resulting in a
surplus of 4.590 billion manats ($2.70 billion).
The State Social Protection Fund posted revenues of 4.295
billion manats ($2.53 billion) and expenditures of 4.124 billion
manats ($2.43 billion). The Unemployment Insurance Fund recorded
revenues of 125.2 million manats ($73.7 million) and expenditures
of 78.1 million manats ($45.9 million). The Compulsory Health
Insurance Fund reported revenues of 1.012 billion manats ($595.4
million) and expenditures of 1.154 billion manats ($678.6 million).
SOFAZ revenues totaled 8.540 billion manats ($5.02 billion), while
expenditures reached 6.434 billion manats ($3.79 billion).
During the reporting period, the budget of the Nakhchivan
Autonomous Republic recorded revenues of 218.4 million manats
($128.5 million) and expenditures of 215.7 million manats ($126.9
million).
