Azerbaijan budget deficit expected to fall to 2% of GDP by 2030

In Azerbaijan, the state budget deficit is projected at 2.2% of GDP in 2027 and 2% in 2030, Report informs, citing the Medium-Term Budget Framework for 2027-2030, published by the Ministry of Finance.

The upper limit of the budget deficit for 2027 is projected at 3.06 billion manats ($1.8 billion), and for the subsequent three years at 3.16 billion manats ($1.86 billion), 3.2 billion manats ($1.88 billion), and 3.41 billion manats ($2 billion), respectively.

The deficit will be financed through privatization proceeds, borrowings (external and internal), and the balance of the single treasury account. Attracting external loans from international financial institutions to finance projects in priority areas will increase the share of credit funds in the sources of deficit financing.

In connection with the implementation of the new macro-fiscal framework program, internal and external borrowing in the long term will be used within approved limits in accordance with the set objectives. To ensure this goal, attention will continue to be given to the development of domestic financial markets through the issuance of government securities and bonds. The consolidated budget deficit is projected to decrease from 2.04 billion manats ($1.2 billion) in 2027 to 54.1 million manats ($31.8 billion) in 2030.