The volume of the transfer from the State Oil Fund of Azerbaijan (SOFAZ) to the state budget will decrease by 1.7 billion manats. This was announced by Minister of Finance Sahil Babayev during the Milli Majlis plenary session discussing the 2026 draft state budget.
According to him, state budget revenues for 2026 are projected at 38.6 billion manats. Of this amount, 22.2 billion manats — or 57.4% — are expected from the non-oil sector, which is 2.1 billion manats (10.6%) more than this year. It is assumed that 88% of current expenditures will be covered by non-oil revenues.
Non-oil revenues are projected to include 13.3 billion manats from tax authorities, 6.9 billion from customs, 1 billion from paid services provided by budgetary institutions, 531 million from other sources, and 450 million from dividends.
Revenues from the oil and gas sector are forecast at 16.4 billion manats — 42.6% of total budget revenues. Of this amount, 3.6 billion manats will come from consortia and SOCAR, while 12.8 billion manats will come from the SOFAZ transfer.
The minister stressed that due to the growth of non-oil revenues, the transfer from the Oil Fund will decrease by 1.7 billion manats in 2026, fully aligning with the strategy of preserving the Fund’s reserves.
Sahil Babayev also stated that 3.5 billion manats will be allocated next year for the reconstruction of the territories liberated from occupation, accounting for 8.4% of budget expenditures. He noted that since late 2020, state budget funds have been mobilized annually for construction and restoration works, and as of early this year, 17.6 billion manats had been spent for these purposes. By the end of the current year, this figure is expected to reach 22 billion manats. The 2026 budget draft and the expenditure framework for the following three years also prioritize ensuring financial resources for this direction.
