In 2025, local revenues for the state budget of Azerbaijan reached 873 million manats, exceeding forecasts by 79 million manats, while local expenditures were executed at 717 million manats.
According to the Operative Information Center-OMM, this was announced by Minister of Labor and Social Protection of the Population Sahil Babayev during a session of the Milli Majlis (National Assembly) dedicated to the discussion of the draft law "On the execution of the 2025 state budget."
Babayev highlighted that a key positive outcome of 2025 was the reduced financial dependency of regions on the central budget. "The subsidy allocated to the Nakhchivan Autonomous Republic decreased by 25.2 million manats, or 13.6%, compared to the previous year. The increasing number of cities and districts financing their expenditures through local revenues demonstrates the strengthening of regional economic and financial potential. Consequently, the state budget was executed with a surplus due to the over-fulfillment of revenues by fiscal authorities and the efficient execution of budget expenditures," the Minister stated.
He further noted that the consolidated budget for 2025 recorded revenues of 48 billion manats against expenditures of 44.6 billion manats, resulting in a surplus for the consolidated budget as well.
Emphasizing significant achievements in maintaining macroeconomic stability, increasing state revenues, expanding the non-oil sector, ensuring debt sustainability, and financing social obligations, the Minister outlined future strategic goals. "The primary objective is to consolidate positive results, accelerate the growth of non-oil revenues, increase the efficiency of public spending, and further enhance the results-oriented nature of the budget system. We are confident that the purposeful economic and fiscal policy being implemented will serve to strengthen the country's financial resilience, improve the welfare of the population, and achieve development targets," Babayev concluded.
The shift toward a results-oriented budgeting system is a critical component of Azerbaijan's broader economic modernization strategy. By linking budget allocations directly to measurable performance outcomes, the government aims to optimize resource distribution, enhance transparency, and ensure that public spending effectively contributes to the nation's long-term socio-economic development goals.
