BAKU, Azerbaijan, August 18. Azerbaijan’s state
budget revenues are expected to reach 39.36 billion manat ($23.15
billion) by the end of 2026, which is 756 million manat ($444.7
million), or 2%, above the approved forecast.


This was announced in a report by the Ministry of Finance.


According to the report, 43.4% of state budget revenues, or
17.08 billion manat ($10.05 billion), will account for the oil and
gas sector, while 56.6%, or 22.28 billion manat ($13.1 billion),
will come from the non-oil and gas sector.


Compared to the approved figures, revenues from the oil and gas
sector are expected to exceed the target by 650 million manat
($382.4 million), or 4%, while revenues from the non-oil and gas
sector are expected to be 106 million manat ($62.4 million), or
0.5%, higher.


“Of the expected state budget revenues, 17.76 billion manat
($10.4 billion), or 45.1%, will come from taxes and duties; 6.76
billion manat ($3.978 billion), or 17.2%, from customs duties and
import taxes; 12.8 billion manat ($7.5 billion), or 32.6%, from
transfers from the State Oil Fund of Azerbaijan (SOFAZ); 1.02
billion manat ($0.6 billion), or 2.6%, from budget organizations’
extra-budgetary revenues; and 987 million manat ($580.6 million),
or 2.5%, from other sources.


Tax and duty revenues are expected to amount to 17.7 billion
manat ($10.4 billion), which is 850 million manat ($500 million),
or 5%, above the approved figure for the current year. Of this
amount, 4.25 billion manat ($2.5 billion), or 23.9%, will come from
the oil and gas sector, while 13.5 billion manat ($7.9 billion), or
76.1%, will come from the non-oil and gas sector.


Of the expected tax revenues from the oil and gas sector, 41.2%,
or 1.75 billion manat ($1.03 billion), will consist of taxes paid
by the State Oil Company of Azerbaijan (SOCAR); 11.8%, or 500
million manat ($294 million), of corporate income tax paid by
contractors operating under production sharing agreements (PSAs)
for the Azeri-Chirag-Gunashli project; and 47.1%, or 2 billion
manat ($1.17 billion), of corporate income tax paid by contractors
operating under PSAs for the Shah Deniz project.







In calculating the expected revenues for the 2026 state budget,
the average selling price of Azerbaijani gas across all
destinations was set at $296 per 1,000 cubic meters, up $35. Due to
the price increase, corporate income tax revenues from contractors
operating under PSAs for the Shah Deniz project are expected to
rise by 400 million manat ($235.3 million), or 25%.


“Tax revenues from the non-oil and gas sector collected through
the tax authorities are expected to amount to 13.5 billion manat
($7.9 billion) in the 2026 state budget, which is 200 million manat
($117.6 million), or 1.5%, above the approved figure for the
current year,” the report said.


By the end of 2026, revenues from paid services provided by
budget organizations are expected to amount to 1.02 billion manat
($0.6 billion), unchanged from the approved figure.


Revenues from leasing state property and land plots beneath
privatized state enterprises and facilities are projected at 46
million manat ($27 million), 6 million manat ($3.5 million), or
15%, above the approved figure.


Other revenues are expected to amount to 941 million manat
($553.5 million), unchanged from the approved figure.


Revenues from transfers from the State Oil Fund of Azerbaijan
(12.8 billion manat or $7.5 billion) are expected to remain at the
same level as the approved forecast," added the report.