BAKU, Azerbaijan, August 7. The share of the
non-oil and gas sector in Azerbaijan’s state budget revenues
reached 57.3% in the first half of 2026.


This was announced by the Ministry of Finance in its latest
report on the execution of the state and consolidated budgets for
the period from January through June 2026.


According to the report, the increased share of the non-oil
sector demonstrates its growing role in generating budget revenues
compared with previous years. At the same time, the ratio of the
consolidated budget’s non-oil primary deficit to non-oil gross
domestic product (GDP) declined to 17.5% as of the end of June
2026, indicating stronger fiscal sustainability.


The report indicates that state budget revenues amounted to 19.1
billion manat ($11.28 billion) in the period from January through
June 2026, while actual spending from allocated budget funds
totaled 16.7 billion manat ($9.86 billion). The number of payment
orders processed for expenditure execution reached 624,100.


In addition, interest income of 27 million manat ($15.8 million)
was generated through active management of the unified treasury
account balance. These revenues were generated solely from funds
placed in foreign currency.







The ministry also noted that refunds under the “VAT Refund”
project continued during the reporting period. A total of 153.2
million manat ($90.1 million) was refunded in value-added tax
payments. Meanwhile, 154.6 million manat ($90.9 million) was
returned to individuals and legal entities, while refunds related
to state duties amounted to 1.4 million manat ($823,529).


Earlier, the Minister of Finance, Sahil Babayev, declared during
the discussion of the draft law "On the implementation of the state
budget of Azerbaijan for 2025" at a session of the parliament that
in recent years, consistent reforms carried out in the country have
ensured the sustainable development of the non-oil sector.
According to him, during the reporting period, GDP in the non-oil
and gas sector amounted to 92.3 billion manat ($54.3 billion),
accounting for 71.5% of total GDP, representing 2.7% real growth
compared to 2024," he explained.


The minister noted that the share of non-oil revenues in the
consolidated budget reached 55.2%, and the share of non-oil taxes
reached 25%. He emphasized that the share of non-oil revenues of
the state budget in total revenues has increased from 43.3% to 52%
in the last 5 years, and it's planned to increase the share of
non-oil revenues to 57.4% in the 2026 state budget.


"The dynamics of the mentioned figures show that the development
of the non-oil sector and reducing the dependence of the state
budget on oil revenues are one of the main priorities of the state.
Measures are being continuously implemented to increase revenues in
the non-oil sector and diversify their sources, and the issue is
constantly being monitored," Babayev added.