Azerbaijan records highest-ever income tax revenues in 2024 – Accounts Chamber

In 2024, income tax revenues in Azerbaijan reached a historic high of 1.839 billion manats (approximately $1.081 billion), marking the largest share of such revenues in the state budget since the country gained independence, Chairman of the Accounts Chamber Vugar Gulmammadov announced at the opening meeting of the extraordinary session of the Milli Majlis (Parliament), according to Report.

Gulmammadov emphasized that the rise in personal income tax is a key socio-economic indicator. “Over the past five years, growth in both the state budget and wage expenditures has remained aligned with the overall pace of budget expansion,” he said.

He noted that wage increases not only boost income tax revenues but also enhance contributions to extra-budgetary social funds, including the State Social Protection Fund, the Unemployment Insurance Fund, and the Compulsory Medical Insurance Fund.

“In 2024 alone, more than 1.895 billion manats (about $1.114 billion) were transferred to these three funds through state-funded wage payments. This highlights the direct correlation between wage levels in the public sector and the financial health of social protection funds,” Gulmammadov said. “Thus, wage growth serves not only as a measure of social well-being but also as a crucial component in maintaining public financial stability.”

He noted that while the 2024 report partially includes forecasts and execution figures for most programs, the data on actual outcomes and performance metrics are not provided.

“Furthermore, the report lacks expenditure details for two state programs, and although funding was allocated for three others, the appropriated funds were not utilized,” Gulmammadov stated. “It is essential that future reports provide comprehensive information on program implementation and financial execution.”