Azerbaijan plans to increase the share of non-oil and gas revenues in the state budget to 70% by 2029, according to the Minister of Labor and Social Protection of the Population, Sahil Babayev.
The Operative Information Center-OMM reports that the Minister made this statement during a meeting of the Milli Majlis (National Assembly) Committee on Economic Policy, Industry, and Entrepreneurship, held to discuss the draft law on the execution of the 2025 state budget.
Minister Babayev noted that the share of non-oil and gas revenues in the budget reached 55.2% last year, marking a 2.8 percentage point increase compared to 2024. "Our target for 2029 is to reach 69-70%. The ratio of non-oil and gas revenues of the consolidated budget to non-oil and gas GDP has reached 28.7%, and the non-oil and gas base deficit of the consolidated budget was only 18.6% of non-oil and gas GDP. This is a very significant indicator," he stated.
The Minister further explained that the government is actively working to reduce the non-oil base deficit, which measures the ratio of non-oil and gas revenues to non-oil and gas expenditures. "We believe that lowering this figure is crucial for strengthening the macroeconomic and fiscal frameworks of the Azerbaijani state budget. Last year, this indicator was 18.6% of GDP, which is 3.5 percentage points lower than the target of 22%. We plan to reduce this figure to 13% by 2029," Babayev added.
This strategic shift is part of Azerbaijan's broader economic diversification policy, aimed at reducing reliance on hydrocarbon exports and fostering sustainable growth in the non-oil sector. By prioritizing fiscal discipline and expanding non-oil revenue streams, the government seeks to ensure long-term economic stability and resilience against global energy market fluctuations.
