Azerbaijan's Parliament Receives Draft State Budget For 2027

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 23. Azerbaijan's state budget revenues for 2027 are projected at 39.25 billion manat ($23.09 billion), while expenditures are projected at 42.4 billion manat ($24.94 billion).

This was stipulated in the draft law on Azerbaijan's state budget for next year.

The main sources of budget revenue include taxes, customs duties, receipts from state property, dividends from state enterprises, and transfers to the state budget.

The largest shares of state budget revenue for 2027 are expected to come from value-added tax (VAT), at nearly 9.39 billion manat ($5.52 billion); corporate income tax, at 6.98 billion manat ($4.11 billion); and personal income tax, at 3.07 billion manat ($1.81 billion). The upper limit of the transfer to the state budget from the relevant institution is set at 11.9 billion manat ($7 billion).

The main areas of budget spending include economic activity, defense and national security, education, general public services, social protection and social security, and healthcare. The budget allocates about 8.91 billion manat ($5.24 billion) to economic activity, roughly 8.82 billion manat ($5.19 billion) to defense and national security, 5.52 billion manat ($3.25 billion) to general public services, 5.99 billion manat ($3.52 billion) to education, 4.9 billion manat ($2.9 billion) to social protection and social security, and 2.8 billion manat ($1.6 billion) to healthcare.

Of the education expenditure, 2.18 billion manat ($1.29 billion) will be allocated to general education, 434.8 million manat ($255.76 million) to preschool education, and 240.6 million manat ($141.53 million) to higher education. In healthcare, 1.1 billion manat ($647.06 million) is earmarked for the Compulsory Health Insurance Fund. A transfer of 1.6 billion manat ($941.18 million) from the state budget is allocated to balance the budget of the State Social Protection Fund.

Under economic activity, 6.4 billion manat ($3.76 billion) will be allocated to construction and urban planning, including 5.3 billion manat ($3.1 billion) for public capital investment. Furthermore, about 1.38 billion manat ($811.47 million) is earmarked for agriculture, 438.6 million manat ($258 million) for environmental protection, and 335.2 million manat ($197.18 million) for housing and communal services.

The ceiling on public debt servicing expenditure is set at 772.5 million manat ($454.41 million) for domestic debt and approximately 1.43 billion manat ($839.7 million) for external debt. These amounts include interest payments of 635.3 million manat ($373.71 million) and 364 million manat ($214 million), respectively.

In 2027, the ceiling on domestic government borrowing is set at 2.5 billion manat ($1.47 billion), while the ceiling on external government borrowing is set at 6 billion manat ($3.53 billion). The ceiling on state guarantees to be issued during the year is also set at 6 billion manat.

The state budget deficit of nearly 3.15 billion manat ($1.85 billion) is planned to be financed through privatization receipts, domestic and external borrowing, and the unspent balance in the single Treasury account as of January 1, 2027.

For 2027, the ceiling on total consolidated budget expenditure is set at about 50.38 billion manat ($29.63 billion), while the ceiling on the consolidated budget deficit, excluding revenues of the relevant state institution, is set at approximately 16.7 billion manat ($9.8 billion).

According to the draft law, the 2027 state budget law will enter into force on January 1, 2027.

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