BAKU, Azerbaijan, July 27. Azerbaijan's state budget revenues totaled 19.179 billion manats ($11.28 billion), while expenditures reached 16.776 billion manats ($9.87 billion) in the first six months of 2026, resulting in a budget surplus of 2.404 billion manats ($1.41 billion), the country's Finance Ministry said.
According to the ministry, state budget revenues exceeded the forecast of 18.829 billion manats ($11.07 billion) by 350.3 million manats ($206.1 million), or 1.9%, representing 49.7% of the annual revenue target for 2026.
Excluding transfers from the State Oil Fund of the Republic of Azerbaijan (SOFAZ), state budget revenues amounted to 12.759 billion manats ($7.51 billion), exceeding the forecast by 2.8%.
Tax revenues accounted for 8.843 billion manats ($5.20 billion), or 46.1%, of total budget revenues. Transfers from SOFAZ totaled 6.420 billion manats ($3.78 billion), or 33.5%, while customs revenues reached 3.144 billion manats ($1.85 billion), or 16.4%. Revenues from paid services provided by state-funded organizations amounted to 350.7 million manats ($206.4 million), income from leasing state property reached 28.2 million manats ($16.6 million), and other revenues totaled 394 million manats ($231.8 million).
Compared with budget projections, tax revenues exceeded the target by 217.7 million manats ($128.1 million), customs revenues by 10.4 million manats ($6.1 million), income from leasing state property by 5.5 million manats ($3.2 million), and other revenues by 246.2 million manats ($144.8 million). Revenues from paid services of state-funded organizations fell short of the forecast by 108.7 million manats ($63.9 million), while SOFAZ transfers were executed as planned.
Compared with the first half of 2025, tax revenues increased by 139 million manats ($81.8 million), customs revenues by 52.5 million manats ($30.9 million), leasing income by 6.3 million manats ($3.7 million), and revenues from paid services by 38.6 million manats ($22.7 million).
Non-oil and gas revenues reached 10.981 billion manats ($6.46 billion), accounting for 57.3% of total budget revenues, up 5.4 percentage points from a year earlier. The figure exceeded the forecast by 329.1 million manats ($193.6 million) and was 703.8 million manats ($413.9 million) higher than in the first half of 2025.
Within non-oil and gas revenues, tax receipts accounted for 7.065 billion manats ($4.16 billion), customs revenues for 3.144 billion manats ($1.85 billion), paid services by state-funded organizations for 350.7 million manats ($206.4 million), other revenues for 394 million manats ($231.8 million), and leasing state property for 28.2 million manats ($16.6 million).
Oil and gas revenues totaled 8.198 billion manats ($4.82 billion), exceeding the forecast by 21.2 million manats ($12.5 million).
Of total oil and gas revenues, 1.778 billion manats ($1.05 billion), or 21.7%, came from tax receipts, while 6.420 billion manats ($3.78 billion), or 78.3%, consisted of transfers from SOFAZ.
Of oil and gas tax revenues, 843.5 million manats ($496.2 million), or 47.4%, came from taxes paid by the State Oil Company of the Azerbaijan Republic (SOCAR), 730.4 million manats ($429.6 million), or 41.1%, from profit tax on the Shah Deniz field, and 204.3 million manats ($120.2 million), or 11.5%, from profit tax paid by the Azerbaijan International Operating Company (AIOC).
Budget expenditures
The Finance Ministry said all priority state obligations, including wages, pensions, social benefits, reconstruction of territories liberated from occupation, government programs, debt servicing, and other essential expenditures, were fully and promptly financed during the reporting period.
State budget expenditures totaled 16.776 billion manats ($9.87 billion) in the first half of 2026, representing 40.2% of the annual expenditure plan.
Current expenditures amounted to 11.643 billion manats ($6.85 billion), or 69.4% of total spending, capital expenditures reached 4.188 billion manats ($2.46 billion), or 25%, and debt servicing expenditures totaled 944.8 million manats ($555.8 million), or 5.6%.
Socially oriented expenditures accounted for 8.787 billion manats ($5.17 billion), or 52.4% of total spending, up 951.3 million manats ($559.6 million), or 12.1%, compared with the same period of 2025.
By functional classification, spending included:
-
Defense and national security: 3.437 billion manats ($2.02 billion)
-
Economic activity: 2.578 billion manats ($1.52 billion)
-
Education: 2.400 billion manats ($1.41 billion)
-
Social protection and security: 2.360 billion manats ($1.39 billion)
-
General public services: 2.340 billion manats ($1.38 billion)
-
Judiciary, law enforcement and prosecution: 1.404 billion manats ($825.7 million)
-
Other services: 669.4 million manats ($393.8 million)
-
Healthcare: 591.6 million manats ($348 million)
-
Agriculture: 527.3 million manats ($310.2 million)
-
Culture, arts, information, sports and youth policy: 217.9 million manats ($128.2 million)
-
Environmental protection: 147 million manats ($86.5 million)
-
Housing and utilities: 103.8 million manats ($61.1 million)
By economic classification, spending included:
-
Wages: 5.609 billion manats ($3.30 billion)
-
Non-financial assets: 3.983 billion manats ($2.34 billion)
-
Procurement of goods and services: 2.325 billion manats ($1.37 billion)
-
Grants and other payments: 1.600 billion manats ($941 million)
-
Social payments: 1.643 billion manats ($967 million)
-
Operations on liabilities: 494.2 million manats ($290.7 million)
-
Subsidies: 483.2 million manats ($284.2 million)
-
Interest payments: 467.4 million manats ($275 million)
-
Financial asset operations: 139.3 million manats ($81.9 million)
-
Mandatory state personal insurance: 32.3 million manats ($19 million)
Capital investment spending financed 810.2 million manats ($476.6 million), representing 30% of the annual allocation.
A total of 1.064 billion manats ($626 million), or 30.4% of the annual allocation, was spent on reconstruction and restoration projects in the territories liberated from occupation.
Of that amount, 974.1 million manats ($572.9 million) was allocated to infrastructure projects, including roads, residential construction, tourism infrastructure, cable cars in Shusha, Khankendi, and Lachin, electricity supply, water infrastructure, and industrial parks. Another 29.8 million manats ($17.5 million) financed healthcare and cultural projects, 45.3 million manats ($26.6 million) was allocated for mine clearance, and 14.9 million manats ($8.8 million) was spent on defense and law enforcement facilities.
During the reporting period, 144.5 million manats ($85 million) was allocated from reserve funds, including 23.5 million manats ($13.8 million) from the presidential reserve fund and 121 million manats ($71.2 million) from the state budget reserve fund.
Public debt
The 2026 state budget earmarked 2.458 billion manats ($1.45 billion) for servicing public debt and related obligations.
In the first half of the year, Azerbaijan spent 944.8 million manats ($555.8 million) on debt servicing, including 275.9 million manats ($162.3 million) in interest payments on domestic debt and 668.9 million manats ($393.5 million) on external debt, comprising 494.2 million manats ($290.7 million) in principal repayments and 174.7 million manats ($102.8 million) in interest payments.
As of July 1, 2026, Azerbaijan's external public debt stood at $4.617 billion, equivalent to 6% of projected GDP for the year.
Domestic public debt totaled 15.982 billion manats ($9.40 billion), or 12.2% of projected GDP.
Consolidated budget
In the first half of 2026, consolidated budget revenues amounted to 24.414 billion manats ($14.36 billion), while expenditures totaled 19.824 billion manats ($11.66 billion), resulting in a surplus of 4.590 billion manats ($2.70 billion).
The State Social Protection Fund posted revenues of 4.295 billion manats ($2.53 billion) and expenditures of 4.124 billion manats ($2.43 billion). The Unemployment Insurance Fund recorded revenues of 125.2 million manats ($73.7 million) and expenditures of 78.1 million manats ($45.9 million). The Compulsory Health Insurance Fund reported revenues of 1.012 billion manats ($595.4 million) and expenditures of 1.154 billion manats ($678.6 million). SOFAZ revenues totaled 8.540 billion manats ($5.02 billion), while expenditures reached 6.434 billion manats ($3.79 billion).
During the reporting period, the budget of the Nakhchivan Autonomous Republic recorded revenues of 218.4 million manats ($128.5 million) and expenditures of 215.7 million manats ($126.9 million).
