Azerbaijan’s draft 2027 state budget projects that all 67 cities and districts will cover their designated local expenditures without additional transfers from the central budget.
The proposal estimates combined revenues across the 67 territories at 18.43 billion manats, or about $10.84 billion, while local expenditures are projected at 735.575 million manats, or about $432.7 million, according to the draft law published by Azerbaijan’s Milli Majlis.
The difference, approximately 17.694 billion manats, or $10.41 billion, is designated as the minimum amount to be transferred to centralized state-budget revenues. That means revenue collected in a city or district does not necessarily remain entirely at the local government’s disposal.
Local Spending Does Not Cover Every State Program
The absence of planned transfers applies to the category of local expenditures specified in the bill. It does not mean cities and districts must independently fund every state program, construction project or social obligation carried out in their territory.
Economist Eyyub Kerimli said local expenditures generally include public-space improvements, repairs to parks and neighborhood roads, and other infrastructure maintenance. Such projects affect living conditions and the business environment in the regions.
Support Remains Available if Revenue Falls Short
The bill retains a safeguard for revenue shortfalls. If a territory’s revenue is insufficient to finance its local expenditures, the state budget may provide a transfer equal to as much as 10% of those expenditures.
The figures remain projections in a draft budget and may change during parliamentary review or implementation. The original Russian-language report was published by Vesti Baku.