17:10 - 20.02.2026

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February 20, Fineko/abc.az. In 2026, Azerbaijan's fiscal policy will be pursued on the basis of a conservative approach aimed at gradually reducing dependence on oil revenues, ABC.AZ reports, referring to Fitch Solutions’ forecast on Azerbaijan.

According to agency's forecast, this year, non-oil budget revenues will grow at double-digit rates and will amount to more than 57% of overall budget revenues.

This is regarded as an important step towards diversifying the fiscal structure and strengthening long-term sustainability.

At the same time, it is expected to reduce transfers to the budget from the State Oil Fund (SOFAZ) by 11%, which will gradually reduce dependence on oil revenues.

The report notes that the budget deficit in 2026 is projected at about 1.9% of GDP, and this figure will be close to the level of 2025. And the annual growth in income and expenses will be limited to about 0.7%, which is aimed at maintaining fiscal discipline in an uncertain global energy market.

At the same time, it is reported that defense spending will remain high. According to the agency, in 2026, defense spending will maintain its growth rate and will occupy a significant share in the budget.

Fitch Solutions believes that the growth in non-oil revenues and the reduction in transfers are a positive signal in terms of strengthening long-term fiscal stability.