Azerbaijan is considering raising the maximum share of state budget revenue that may be allocated to the reserve fund from 5% to 7% under legislation tied to the 2027 budget.
The proposed amendment to the Law on the Budget System would expand the government’s ability to set aside money for unforeseen expenses and measures of national importance, Vesti Baku reported.
Under current law, the state budget reserve fund may not exceed 5% of budget revenue, taking into account the fund’s actual spending in the previous year. Raising the ceiling would not automatically increase reserve allocations to the new maximum.
Draft Keeps 2027 Reserve Allocations at 1% of Spending
The draft 2027 budget allocates 410 million manats to two reserve funds, equal to 1% of total state spending. That share is unchanged from the approved forecast for 2026.
Of the total, 300 million manats would remain in the presidential reserve fund, while 110 million manats would be allocated to the state budget reserve fund.
Budget Revenue Forecast at 39.254 Billion Manats
State budget revenue for 2027 is projected at 39.254 billion manats, while spending is forecast at 42.4 billion manats. The maximum deficit is estimated at approximately 3.2 billion manats.
The budget package has been discussed by the relevant committee of the Milli Majlis, Azerbaijan’s parliament. The amendment remains draft legislation and would take effect only after completing the parliamentary process and receiving approval.