ADB Forecasts Decrease in Azerbaijan’s Budget Deficit by 2026
Azerbaijan’s State Budget Deficit to Shrink to 2% of GDP by 2026
According to the latest report from the Asian Development Bank (ADB), Azerbaijan’s state budget deficit is set to decrease to 2% of the country’s GDP by the year 2026. This marks a significant improvement from the expected 2.4% deficit in 2025.
The report also outlines the breakdown of revenue and expenditure for the upcoming years. It forecasts revenue to reach 30% of GDP by 2025, with tax revenue accounting for 12%, nontax revenue for 7%, and transfers from SOFAZ for 11%. On the other hand, budget expenditure is projected to be 32% of GDP, with 19% allocated for current expenditure and 11% for capital outlays. Social protection and support expenditures are expected to increase by 8% and make up about 12% of total budget expenditure. Additionally, public investment outlays are projected to decrease to 2% of GDP.
In 2024, the state budget deficit stood at 0.0004% of GDP, showcasing a positive trend. Moreover, in the first two months of this year, the state budget recorded a surplus equivalent to 7.2% of GDP.
These developments indicate positive changes in Azerbaijan’s fiscal landscape and bode well for the country’s economic outlook in the coming years.
