Ratio of budget deficit to GDP in Azerbaijan predicted to decrease to 2% in 2027

The ratio of the state budget deficit to the gross domestic product (GDP) in Azerbaijan is predicted to decrease to 2.2% in 2024, and to 1.9% in 2027, Report informs, citing the 2024-2027 Medium-term Budget Framework announced by the Ministry of Finance.

According to the document, the upper limit of the state budget deficit in 2024 is predicted to amount to 2,590 million manats ($1.5 billion), in 2025 - to 2,891.5 million manats ($1.7 billion), in 2026 - to 2,379.8 million manats ($1.4 billion), and in 2027 - to 2,589.8 million manats ($1.5 billion).

As in previous years, the deficit of the state budget is supposed to be financed by revenues from privatization, borrowing (foreign and domestic) and the balance of the treasury single account.

In 2024, the share of foreign and domestic borrowing as a source of financing the deficit is expected to be 62.2%, and at the end of the medium-term period, it will be 42.5%. At the same time, it is predicted that the share of the loans attracted for the signed projects in the financing of the budget deficit will increase to 9.4% in 2024 and 46.3% by the end of the period.