Azerbaijan to reduce budget subsidy to Nakhchivan in 2027

The Republic of Azerbaijan plans to allocate 198 million manats in state budget subsidies to the Nakhchivan Autonomous Republic in 2027, according to the newly submitted draft law "On the 2027 State Budget."

The proposed financial support accounts for approximately 0.5% of total state budget expenditures and represents 3.6% of national spending allocated for general government services. Notably, this funding level marks a 6.4% decrease compared to the approved fiscal forecasts for 2026, signaling a gradual reduction in the autonomous region's dependence on central government transfers.

This subsidy adjustment comes as part of Azerbaijan's broader macroeconomic framework for the upcoming fiscal cycle. According to the draft legislation, total state budget revenues for 2027 are projected at 39.254 billion manats, while overall public expenditures are targeted at 42.400 billion manats, leaving a fiscal deficit capped at 3.146 billion manats.

Parliamentary committees in the Milli Majlis are scheduled to review the spending priorities, revenue streams, and regional financial allocations in detail before the final draft is put to a vote.

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• Azerbaijan
• Nakhchivan