Azerbaijan's state budget revenues in 2026 expected 2% higher than forecast

Azerbaijan's state budget revenues in 2026 are expected at 39.365 billion manats, 2% higher than the approved forecast, according to the Azerbaijani Ministry of Finance's document titled "Report on the Execution of the 2026 State and Consolidated Budgets for the First Half of the Year and Expectations for Year-End," Report informs.

According to the document, 43.4% of state budget revenues, or 17.085 billion manats, will come from the oil and gas sector, while 56.6%, or 22.28 billion manats, will come from the non-oil and gas sector.

Compared to the approved figures, oil and gas sector revenues are expected to increase by 650 million manats, or 4%, and non-oil and gas sector revenues by 106 million manats, or 0.5%.

Of the total expected revenue, 17.76 billion manats, or 45.1%, will come from taxes and duties, while 6.762 billion manats, or 17.2%, will come from customs duties and import tax revenues.

Transfers from the State Oil Fund of Azerbaijan (SOFAZ) to the state budget will amount to 12.835 billion manats, or 32.6% of all revenues, off-budget revenues of budgetary organizations will amount to 1.021 billion manats (2.6%), and other revenues will amount to 987 million manats (2.5%).

The volume of transfers from SOFAZ will remain at the approved forecast level.

Tax and duty revenues will exceed the approved figure by 850 million manats, or 5%. Of this total, 4.25 billion manats (23.9%) will come from the oil and gas sector, while 13.51 billion manats (76.1%) will come from the non-oil and gas sector.

Of the expected oil and gas sector tax revenues, 1.75 billion manats, or 41.2%, will come from taxes paid by the State Oil Company of Azerbaijan (SOCAR).

Another 500 million manats (11.8%) will come from the profit tax on contractors working under production sharing agreements for the Azeri-Chirag-Gunashli project, and 2 billion manats (47.1%) from the Shah Deniz project.

The Ministry of Finance notes that when calculating expected state budget revenues for 2026, the average selling price of 1,000 cubic meters of Azerbaijani gas across all routes has been increased by $35, to $296.

As a result, income tax revenues from contractors under the Shah Deniz project are expected at 400 million manats, or 25%, higher than the approved target.

Tax revenues from the non-oil and gas sector are expected at 200 million manats, or 1.5%, higher than the approved target for 2026.

State budget expenditures in 2026 are projected at 40.862 billion manats, 2% lower than the approved target.

Some 2.457 billion manats are allocated for servicing the public debt, including 1.4 billion manats for servicing external debt and 1.057 billion manats for domestic debt.

($1=1.7 manats)