Azerbaijan expects to allocate 13.2 billion manats ($7.76 billion) from the state budget to reconstruction in Karabakh and East Zangezur from 2027 through 2030, according to the latest medium-term fiscal projections.
The forecast is contained in the Finance Ministry’s medium-term expenditure framework for 2027-2030. The figures are planning benchmarks and do not mean that every allocation has already been approved by a separate law or disbursed.
Reconstruction to Take 24.1% of Capital Spending
The planned 13.2 billion manats would finance restoration and reconstruction in the Karabakh and East Zangezur economic regions. The amount is projected to account for 24.1% of all state-budget capital expenditure over the four-year period, according to Report.az.
Total Investment Forecast at 108.6 Billion Manats
Investment in fixed capital across Azerbaijan is forecast at 108.6 billion manats ($63.88 billion) in 2027-2030. Of that amount, 76.6 billion manats, or about 70%, is expected to go to the non-oil and gas sector.
Annual investment is projected at 25.4 billion manats in 2027, 26.9 billion in 2028, 27.9 billion in 2029 and 28.4 billion manats in 2030. Investment in the non-oil and gas economy is expected to rise from 17.4 billion manats in 2027 to 20.9 billion in 2030.
Debt Service Nears 1 Billion Manats in Interest
State debt service in 2027 is projected at 2.2 billion manats ($1.29 billion). External debt payments are expected to total 1.4275 billion manats, including 1.0635 billion in principal and 364 million in interest.
Domestic debt payments are forecast to include 137.2 million manats in principal and 635.3 million in interest. Total interest costs on public debt would therefore reach 993 million manats ($584 million).
Two Different Deficit Measures
The consolidated-budget deficit is forecast to narrow from 2.758 billion manats in 2027 to 442.2 million manats, or about $260 million, in 2030.
The state-budget deficit itself is projected to move from 3.146 billion manats in 2027 to 3.6595 billion in 2030. Across the four years, it is expected to average about 2.2% of gross domestic product.
For 2027, state-budget revenue is forecast at 39.254 billion manats and expenditure at 42.4 billion manats. The revenue forecast was raised by 20 million manats from the initial version.
Source: Vesti Baku