Azerbaijan’s non-oil and gas sector is expected to provide 60.6% of state budget revenue in 2027, equivalent to approximately AZN 23.8 billion. Revenue from these sources is projected to rise by AZN 1.6 billion from the 2026 forecast.
Finance Minister Sahil Babayev presented the figures during parliamentary committee discussions on November 11, FinFly reports, citing local media. The revenue structure also appears in official Milli Majlis materials.
Oil revenue and the fund transfer
Total state budget revenue is set at AZN 39.254 billion. Oil and gas revenue accounts for approximately AZN 15.5 billion, or 39.4%. The sector-level amounts are rounded.
The planned transfer from the State Oil Fund to the state budget is AZN 11.9 billion. At the budget’s assumed exchange rate of AZN 1.70 per dollar, this equals USD 7 billion. The currency distinction matters: the transfer is not AZN 7 billion.
The transfer is projected to decline by AZN 935 million from 2026, equivalent to USD 550 million at the same exchange rate.
Financing current expenditure
Non-oil revenue is projected to cover 90.1% of current expenditure in 2027. Babayev said the medium-term objective was to increase that coverage to 100%.
This is a separate measure: the 90.1% ratio relates to current spending, not total budget expenditure, which also includes capital spending and government debt service.
The budget’s macroeconomic calculations assume an average oil price of USD 65 per barrel. Real non-oil and gas GDP growth is projected at 4.4%, with nominal sector output of AZN 109.1 billion. These are assumptions underpinning the draft budget, which remains under parliamentary discussion.
