Azerbaijan Proposes Cap On Current Spending Growth Under Budget Rule

(MENAFN- Trend News Agency) BAKU, Azerbaijan, November 4. Azerbaijan's Chamber of Accounts has proposed introducing a limit on the growth rate of current expenditures into the budget rule, alongside the non-oil primary deficit target.

Chairman of the Chamber of Accounts Vugar Gulmammadov presented the initiative during a meeting of the Parliamentary Committee on Economic Policy, Industry and Entrepreneurship, where he addressed the draft state budget for 2027.

According to him, the ratio of the consolidated budget's non-oil primary deficit to non-oil gross domestic product (GDP) is projected to stand at 17.1% in 2027, down 1.7 percentage points from the corresponding figure for 2026.

He said that this indicator is expected to decline by an average of 2.1 percentage points annually over the medium term.

"The ratio of the consolidated budget's non-oil primary deficit to non-oil GDP is one of the most advanced and professionally developed fiscal anchors designed to safeguard macroeconomic stability in resource-dependent countries. We believe that a limit on the growth rate of current expenditures could be added as an additional anchor alongside the non-oil primary deficit rule," Gulmammadov emphasized.

The chairman of the Chamber of Accounts, Gulmammadov added that Azerbaijan is expected to comply with the medium-term ceiling set for the ratio of public debt to GDP.

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