BAKU, Azerbaijan, October 16. Azerbaijan plans
to reduce the consolidated budget's non-oil primary deficit to 12%
of non-oil GDP by the end of 2030.
The target is set out in the Medium-Term Expenditure Framework
prepared by the Ministry of Finance for the next four years.
According to the document, the government plans to gradually
reduce the consolidated budget's non-oil primary deficit as a share
of non-oil GDP over the medium term. The ratio is expected to fall
to 13% by the end of 2029 and 12% by the end of 2030.
To achieve this, the ratio is projected to decline by an average
of 2.1 percentage points annually over the medium term.
The document notes that implementing the macro-fiscal framework
will help preserve macroeconomic stability and fiscal and debt
discipline, safeguard the assets of the State Oil Fund of the
Republic of Azerbaijan (SOFAZ), and optimize public spending while
improving its efficiency.
It also states that, under Law No. 245-VIIQD of July 14, 2025,
amending the Law on the Budget System of the Republic of
Azerbaijan, the upper limit for the consolidated budget's non-oil
primary deficit as a share of non-oil GDP is to be set for the end
of the medium-term period rather than separately for each year.
The medium-term macro-fiscal framework is designed not only to
ensure fiscal sustainability but also to provide the necessary
financial resources for implementing existing and future strategies
and government programs.
This approach is expected to help preserve the long-term
sustainability of public finances, use budget resources more
efficiently, and finance spending in priority areas.
