Azerbaijan State Budget Revenues Exceed Forecasts in First Half 2026

The Government of Azerbaijan reported state budget revenues of 19.1792 billion manats for the first six months of 2026, exceeding forecasts by 350.3 million manats. Non-oil and gas sector revenues reached 10.981 billion manats, marking a 6.8% increase over the same period in 2025 and accounting for 57.3% of total revenues. Oil and gas sector revenues totaled 8.1982 billion manats, which included 6.420 billion manats in transfers from the State Oil Fund of the Republic of Azerbaijan.

While tax and lease revenues performed better than expected, customs collections and revenues from state budget-funded organizations fell short of targets. The State Oil Fund and energy entities like SOCAR and the Azerbaijan International Operating Company provided significant contributions to the oil sector's revenue.

During this same period, the government spent 1.0641 billion manats on the reconstruction and restoration of liberated territories, utilizing 30.4% of the annual allocation. The Ministry of Finance noted that 974.1 million manats of this spending went toward infrastructure, with the largest shares dedicated to road infrastructure at 489.3 million manats and residential complexes at 371.1 million manats. Other expenditures included 67.6 million manats for tourism, 45.3 million manats for mine clearance, and 29.8 million manats for healthcare and culture projects.