According to forecasts by Fitch Ratings, Azerbaijan's state budget deficit in 2025 will amount to 600 million manats ($352.941 million), EDnews reports.

In 2026, the deficit will increase to 1.1 billion manats ($647.058 million).

The agency attributes this to several factors - lower than budgeted oil prices, continued, albeit declining, capital expenditures on the restoration of Karabakh, pressure related to defense and social security spending.

In January-May 2025, the revenues of Azerbaijan's state budget amounted to 17.138 billion manats (just over $10.08 billion), while expenditures stood at nearly 13.692 billion manats (approximately $8.05 billion), according to the country’s State Statistical Committee.

According to the data, there was a 7.1% increase in revenues and a 1.6% growth in expenditures compared to the corresponding period in 2024.

Budget revenues were executed 3.9% above the forecast, while budget expenditures were 3.5% below the forecast.

As a result, a surplus of just over 3.446 billion manats ($2.027 billion) was generated in the stated budget for the first 5 months of this year, marking a 36.05% increase year-on-year.