# Azerbaijan state budget and development planning

> Developing situation record from CLSTR: https://clstr.news/situations/azerbaijan-state-budget-and-development-planning
> Updated: 2026-11-04T10:02:00.000Z. Sources: 6. Developments: 2.

The Azerbaijani government has outlined significant budgetary allocations focused on territorial reconstruction and social sectors. Between 2020 and 2026, approximately $15.3 billion (nearly 26 billion manat) was allocated for the restoration and reconstruction of liberated territories under the Great Return program. This initiative aims to strengthen regional economies through production and employment, with over 1,300 private sector projects currently underway and industrial parks in Aghdam and the Araz Valley already producing goods valued at roughly $1.8 billion.

In addition to territorial development, the 2027 draft state budget includes plans to increase spending on science and education. Finance Minister Sahil Babayev announced that 5.4 billion manat is earmarked for these sectors, representing 3.8 percent of the country’s GDP. Education funding is expected to rise by more than 10 percent in 2026 compared to 2025, while 643 million manat has been designated for culture, information, and youth policy.

As the Azerbaijani Parliament reviews the 2027 budget package, officials have highlighted social welfare as a domestic priority. The State Social Protection Fund's revenues are projected to reach 9.22 billion manat ($5.42 billion) in 2027. Furthermore, state-owned enterprises are expected to contribute 872 million manat ($512.9 million) in dividends to the state budget, representing a 45.3 percent increase over the 2026 forecast. Key contributors include SOCAR, with a projected 434 million manat ($255.3 million), and the International Bank of Azerbaijan, which is expected to contribute 175 million manat ($102.9 million).

Fixed capital investments are projected to reach 25.38 billion manat in 2027, with a forecast to grow to 28.4 billion manat by 2030. While domestic investments are expected to drive this growth, foreign investment is projected to decrease over the same period. In 2027, the oil and gas sector is slated to receive 7.93 billion manat in investment.

## Claims

- State-owned enterprises are projected to pay 872 million manat in dividends to Azerbaijan's state budget in 2027. (reported by 1 source)
- SOCAR is projected to contribute 434 million manat in dividends to the state budget in 2027. (reported by 1 source)
- The International Bank of Azerbaijan (IBA) OJSC is expected to contribute 175 million manat in dividends in 2027. (reported by 1 source)
- Azerbaijan's external debt fell by 9.3% year on year to $12.3 billion as of the end of 2025. (reported by 1 source)

## Timeline

### 2026-11-04: Azerbaijan plans to increase science and education spending

Finance Minister Sahil Babayev announced that Azerbaijan will allocate 5.4 billion manat to science and education, aiming for continuous increases in future budget cycles.

2 sources. https://clstr.news/cluster/azerbaijan-plans-to-increase-science-and-education-spending

### 2026-11-04: Azerbaijan outlines 2027 budget and economic projections

Azerbaijan's 2027 draft budget projects 872 million manat in state enterprise dividends and forecasts fixed capital investments to reach 28.4 billion manat by 2030.

4 sources. https://clstr.news/cluster/azerbaijan-allocates-153-billion-for-territory-restoration

---
Cite as: Azerbaijan state budget and development planning. CLSTR, https://clstr.news/situations/azerbaijan-state-budget-and-development-planning