BAKU, Azerbaijan, October 16.
Azerbaijan's state budget is projected to allocate 8.8 billion
manat ($5.2 billion) for defense and national security in 2027.


This was reflected in the Medium-Term Expenditure Framework
prepared by the country's Ministry of Finance for the next four
years.


According to the document, expenditures on public debt servicing
will amount to 2.2 billion manat ($1.3 billion) in 2027. Of this
amount, 1.4 billion manat ($839.7 million) will be allocated to
servicing external public debt, including 1.06 billion manat
($625.6 million) for principal repayments and 364 million manat
($214.1 million) for interest payments.


For servicing domestic public debt, 137.2 million manat ($80.7
million) is earmarked for principal repayments and 635.3 million
manat ($373.7 million) for interest payments. Thus, total interest
payments on public debt are projected to amount to 999.3 million
manat ($587.8 million) in 2027.


According to the functional classification, the main areas of
state budget expenditures for 2027 are as follows:


- Defense and national security – 8.8 billion manat ($5.2
billion), or 20.8%;


- Economic activity – 8.9 billion manat ($5.2 billion), or
21%;


- General public services – 5.52 billion manat ($3.2 billion),
or 13%;


- Education – 5.09 billion manat ($3 billion), or 12%;


- Social protection and social security – 4.9 billion manat
($2.9 billion), or 11.6%;


- Judiciary, law enforcement and prosecution – 3.4 billion manat
($2 billion), or 8.1%;







- Healthcare – 2.08 billion manat ($1.2 billion), or 4.9%;


- Agriculture – 1.37 billion manat ($811.5 million), or 3.3%


- Services not classified under main functions – 822.5 million
manat ($483.8 million), or 2%;


- Culture, arts, information, physical education and youth
policy – 643 million manat ($378.2 million), or 1.5%;


- Environmental protection – 438.6 million manat ($257.9
million), or 1%;


- Housing and utilities – 335.2 million manat ($197.2 million),
or 0.8%.


The document notes that, compared to 2027, the share of general
public services in state budget expenditures is expected to
increase by 0.6 percentage points by the end of the medium-term
period; the share for healthcare is projected to rise by 0.5
percentage points, and the share for expenditures on the judiciary,
law enforcement, and the prosecutor's office is projected to rise
by 0.3 percentage points.


Furthermore, it is forecast that the respective shares of social
protection and social security, as well as agriculture, within the
state budget will each increase by 0.1 percentage points.


According to the Ministry of Finance’s assessment, the growth in
non-oil and gas revenues, based on updated macroeconomic forecasts,
and the expansion of the medium-term resource envelope (in line
with the projected trajectory of the fiscal rule) will facilitate
the strengthening of the country’s defense and national security
capabilities. It will also enable the financing of the
socio-economic development strategy, the Great Return state
program, the State program for the socio-economic development of
the Nakhchivan Autonomous Republic (2023–2027), and various other
state programs. In addition, it is envisaged that budget resources
will be directed toward fulfilling obligations related to the
servicing of state debt.