As Azerbaijan looks ahead to 2026, the Ministry of Finance has mapped a fiscal year marked by lower fine revenues, higher payroll and insurance spending, broad tax exemptions, shrinking foreign debt, and sustained investment in education and social protection.

In 2026, Azerbaijan’s state budget is projected to receive 149.1 million manats (≈€74.9 million), or just over $87.7 million, from collections and administrative fines, a figure that is 12% lower year-on-year. Payroll expenditures in Azerbaijan are expected to total 10.247 billion manats (≈€5.15 billion), approximately $6.03 billion, reflecting a 5.4% increase compared to the previous year, the Ministry of Finance stated. During the same year, tax exemptions amounting to 3.3 billion manats (≈€1.66 billion), or $1.94 billion, will be applied to entrepreneurial activity, while exemptions worth 12 million manats (≈€6.0 million) are planned for non-entrepreneurial activity.

During 2026, additional exemptions are forecast for non-commercial activity totaling 436.5 million manats (≈€219.3 million), grants as well as humanitarian and technical assistance amounting to 33.4 million manats (≈€16.8 million), special economic zones including the Alat Free Economic Zone totaling 4.7 million manats (≈€2.36 million), and international agreements valued at 1.4 billion manats (≈€703.5 million). Spending on insurance and state social protection is projected to reach 4.354 billion manats (≈€2.19 billion), representing a 5.6% increase over 2025. Meanwhile, expenditures for education are expected to rise by 6.1% to 5.234 billion manats (≈€2.63 billion).

Azerbaijan also plans to significantly reduce its foreign debt. According to the Ministry of Finance, the country’s direct foreign debt is projected to decrease to $4.85 billion by the end of 2026, down from an estimated $5.26 billion at the end of 2025.