Azerbaijan earmarks 1.06 billion AZN for Karabakh reconstruction as oil‑gas revenues beat forecasts

The Azerbaijani government allocated 1 billion 64.1 million AZN in the first half of 2023 for the reconstruction of the liberated territories of Karabakh and Eastern Zangezur. About 30.4 % of the annual planned budget was spent on infrastructure projects, including 489.3 million AZN for roads, 371.1 million AZN for new housing complexes, 67.6 million AZN for tourism infrastructure, and smaller sums for de‑mining, utilities and cultural‑social projects. The spending level is 31.45 % lower than the same period last year.

In parallel, state oil‑gas revenues for the first six months reached 8 billion 198.2 million AZN, exceeding the forecast by 21.2 million AZN (0.3 %). Of this amount, 21.7 % came from tax collections and 78.3 % from transfers of the State Oil Fund. Tax revenues included 47.4 % from SOCAR’s taxes, 41.1 % from profit tax on the Shah Deniz field, and 11.5 % from profit tax on the Azerbaijan International Operations Company.