Azerbaijan outlines 2027 state budget projections

The draft law for Azerbaijan’s 2027 state budget reveals significant shifts in sectoral spending and debt management. Projections indicate a substantial increase in funding for transport and communications, rising from 286.9 million manat in 2026 to 785.1 million manat in 2027, a nearly 2.7-fold increase.

In the justice sector, total spending for the judiciary, law enforcement, and prosecution is expected to reach 3.44 billion manat, a 3.1% increase from 2026. While funding for the judiciary and prosecution is set to rise, law enforcement allocations are projected to decrease slightly by 0.8%.

Regarding national debt, total service costs are forecast to drop by 10.5% to 2.2 billion manat in 2027. This decrease is driven by a projected 27% reduction in internal debt service costs, while external debt service costs are expected to see a modest increase of approximately 2%.

Additionally, social welfare data shows that as of September 2026, the number of individuals receiving monthly social benefits and pensions in Azerbaijan reached 885,951, a 3% increase compared to the previous year. Total payments for benefits and pensions during the first nine months of the year amounted to 1.692 billion manat.