Azerbaijan projects state budget deficit at 2.2% of GDP in 2027-2030

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BAKU, Azerbaijan, October 16. Azerbaijan's state budget deficit is projected to average 2.2% of GDP in 2027–2030.

The forecast is outlined in the Medium-Term Expenditure Framework prepared by the Ministry of Finance for the next four years.

According to the document, the upper limit for the state budget deficit is projected at 3.146 billion manat ($1.85 billion) in 2027, 3.342 billion manat ($1.96 billion) in 2028, 3.5541 billion manat ($2.09 billion) in 2029, and 3.6595 billion manat ($2.15 billion) in 2030.

The deficit is expected to be financed through privatization proceeds, domestic and external borrowing, and the balance in the single treasury account.

The document states that relevant procedures have been launched to attract external borrowing from international financial institutions to finance projects in several priority areas. Loans secured under agreements to be signed are expected to increase the share of this source in financing the state budget deficit.

In line with the objectives of the new macro-fiscal framework, domestic and external borrowing is planned to remain within approved limits over the long term. Developing domestic financial markets through the issuance of government securities and bonds will remain a priority.

The document also projects a significant reduction in the consolidated budget deficit. The deficit is expected to fall from 2.7579 billion manat ($1.62 billion) in 2027 to 442.2 million manat ($260.1 million) in 2030.