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.