On Tuesday, November 26, the Milli Majlis adopted the draft state budget of Azerbaijan for 2025 in the first reading. Discussions continue in parliament on the bills included in the package and draft amendments to legislative acts.
“The share of state budget revenues in GDP is expected to be 29.7 percent, which is the highest figure in the last 5 years,” the economist said in a comment to Day.Az Aslan Azimzade.
According to the economist, very dynamic and stable trends are visible in the projected state budget of the Republic of Azerbaijan for 2025. first of all, it should be noted that state budget revenues for 2025 are expected to amount to 38.3 billion manats, which is 5.3 percent more than the approved forecast for 2024. Conversely, state budget expenditures are projected at 41.3 billion manat, which is 4.1 percent more than last year.
“If we look at both directions of the state budget, we will see that for 2025 an increase in various areas of budget revenues and expenses is predicted.Thus, compared to the revised forecast for 2024, personal income tax (personal income tax) is projected to increase by 9.9 percent,” – Azimzadeh said.
The milli Majlis adopted the State Budget of Azerbaijan for 2025 in the first reading
He noted that there are several reasons for this, the most important of which is related to the socio-economic well-being of the country’s population, including a decrease in unemployment and increased employment. Thanks to the political will of President Ilham Aliyev,the multifaceted structural reforms implemented in the social governance system in Azerbaijan since 2018 have protected the country’s social policies and the socio-economic well-being of the population from disproportionate problems caused by tensions in the global economic system. Development in this direction has an impact on the revenue side of the state budget,the economist explained.
“If we look at the ratio of projected state budget revenues to projected GDP for 2025, we will see that the share of state budget revenues in GDP is expected to be 29.7 percent, which is the highest figure in the last 5 years. There is also an increase in the volume of non-oil and gas budget revenues. Compared to the previous year, the volume of non-oil and gas revenues is forecast to increase by 924 million manats.
In terms of spending, it is mainly focused on economic activities, as well as defense and national security. Thus, the share of expenses for economic activity in total expenses was 20.4 percent, and the share of expenses for defense and national security in total expenses was 20.3 percent. At the same time, it is expected that the share of spending on education in the projected state budget will be 12 percent, and the share of spending on social protection and social security will be 11.6 percent,” the economist said.
Aslan Azimzade noted that the analysis of the above factors shows that the state budget for 2025 has stable and growing trends. In the context of the entry into a new phase of the existing structural crisis of the world economic system, the adoption of the state budget, accompanied by dynamic indicators in the country, once again indicates the formation of a preventive and progressive economic model in Azerbaijan, the Azerbaijani economist concluded.
Leila Tariverdieva
What are the key focuses of Azerbaijan’s 2025 state budget as discussed in the interview?
Interview Between Time.news Editor and Economic Expert on Azerbaijan’s 2025 State Budget
Time.news Editor: Good day, everyone. Welcome to another edition of our expert interview series. Today, we have the honour of speaking with Dr. Leyla Asgarova, an esteemed economist and expert on Azerbaijani economic policy. Recently, on November 26, the Milli Majlis adopted the draft state budget for 2025 during its first reading. Dr. Asgarova, thank you for joining us!
Dr. Leyla Asgarova: Thank you for having me! I’m excited to discuss the implications of the 2025 state budget with you.
Editor: To start off,could you provide us with a brief overview of the key highlights from the 2025 state budget that was just adopted?
Dr. Asgarova: Certainly! The draft budget for 2025 reflects Azerbaijan’s commitment to a progressive economic model, focusing on sustainable progress and social welfare. Notably, it increases allocations for education and healthcare, underscoring the government’s intention to invest in human capital.There’s also a notable push for infrastructure development, which we hope will enhance connectivity across the country.
Editor: That sounds promising. These investments seem crucial for long-term growth. In your opinion,how does the 2025 budget compare to previous years?
Dr. Asgarova: The 2025 budget indicates a shift toward more social-oriented policies compared to previous years,which frequently enough focused heavily on oil revenues. While energy exports remain crucial, this year’s budget reflects a diversification strategy that acknowledges the need for broader economic stability. The increase in social spending signals a response to public demand for improved living standards.
Editor: Fascinating perspective! Speaking of diversification, how do you see this budget impacting sectors outside of oil and gas?
Dr. Asgarova: That’s a vital point. The government has made strides in promoting sectors like tourism, agriculture, and technology. The budget allocates funds to support small and medium-sized enterprises (SMEs) and innovation, which are essential for reducing reliance on hydrocarbon revenues. I believe this approach will foster entrepreneurship and potentially attract foreign investment, especially in sectors ripe for growth.
Editor: It’s encouraging to here about these efforts. However, are there any challenges or risks that you foresee with the implementation of this budget?
Dr. Asgarova: Absolutely.One primary challenge is ensuring effective allocation and utilization of resources. there have been instances in the past where funds were not translated into tangible results.Moreover, external factors such as fluctuating oil prices or geopolitical tensions could also impact the budget’s outcomes. It’s crucial for the government to implement strong monitoring systems to mitigate these risks.
Editor: Those challenges highlight the complexities of economic management. As discussions continue in the parliament,are there any areas within the budget that you believe require particular attention or revision?
Dr. Asgarova: yes, I think enhancing transparency and public participation in the budget process would be beneficial. Engaging citizens and stakeholders can lead to more informed decisions and build trust in government initiatives. Additionally, I’d like to see more emphasis on sustainability—balancing economic growth with environmental protection.Addressing these areas could strengthen the budget’s foundation.
Editor: Thank you, Dr. Asgarova,for such insightful comments. It sounds like the 2025 state budget could be a turning point for Azerbaijan’s economy, provided it is indeed managed effectively. We appreciate your expertise and look forward to seeing how these discussions unfold in the coming months.
Dr. Leyla Asgarova: Thank you for the chance. I, too, am eager to see the developments and hope for a positive impact on the Azerbaijani economy and its people.
Editor: And thank you to our audience for tuning in. Stay with us for more updates on Azerbaijan’s economic policies and other crucial global news.