BAKU, September 8
Azerbaijan’s State Audit Chamber has warned of risks in the country’s public finances, noting that the oil and gas sector remains the overwhelming driver of budget revenues in the first half of 2025.
According to the chamber’s report on budget execution, revenues increased by 961.1 million manats between January and June. Of that, 728.9 million manats — or 75.8% — came from the oil and gas sector, primarily through transfers from the State Oil Fund.
The report highlights several areas of concern. In some cases, changes to legal acts were not reflected in fiscal practice, with 1.2 million manats collected under abolished state duties. Spending discipline was described as weak, with budget expenditures reaching 17.1 billion manats, or 41.3% of the annual plan, in the first half of the year.
Another issue flagged was the use of surplus funds from the single treasury account to reduce domestic debt — a mechanism not provided for in the Law on the Budget System. Around 1.4 billion manats were allocated to this purpose.
The Audit Chamber also pointed to poor performance in restoring resources to the Guarantee Fund. Out of 203.7 million manats earmarked for repayment this year, only 10.7 million manats had been returned by midyear.
The findings underscore Azerbaijan’s continued fiscal dependence on hydrocarbons and weaknesses in budgetary governance, even as energy revenues cushion the state budget.
