Azerbaijan Proposes 2027 Budget With Focus on Non-Oil Growth

The Government of Azerbaijan has proposed a 2027 state budget focused on fiscal discipline and the diversification of revenue. Finance Minister Sahil Babayev presented the draft, which projects total revenues of 39.254 billion AZN. A key priority is increasing non-oil and gas revenues, which are expected to reach a 20-year high of 60.6% of total revenue. The government aims for these funds to cover 90% of current expenditures in 2027, with a long-term goal of 100% coverage by 2030.

To ensure budget sustainability, the government adopted a conservative oil price projection of $65 per barrel and forecasts average annual inflation at 5.3%. The budget includes significant capital investments, most notably 3.422 billion AZN for the restoration of liberated territories under the Great Return initiative and 434 million AZN for the modernization of the Heydar Aliyev Oil Refinery operated by SOCAR.

Parallel to these fiscal plans, the national banking sector shows steady expansion. Zakir Nuriyev, President of the Azerbaijan Banks Association, projected annual growth of 11-12% through 2027. While business loans grew by 18% and consumer loans by 13% in the first nine months of 2026, new regulations effective November 2026 are expected to slow consumer lending. As of October 1, 2026, the country's net financial assets stood at approximately 109.88 billion manat, largely supported by the State Oil Fund.