On the Budget Draft for Next Year: 'Fully Socially Oriented'. 'Salaries Are Very Low'

Next year’s budget could see an increase in revenues and a decrease in expenditures. The Ministry of Finance has already published the draft state budget for 2025, forecasting revenues at 36.616 billion manat. This figure is 228 million manat or 0.6% higher than the approved figure for 2024.

According to the draft, next year’s state budget expenditures will decrease by 74.7 million manat (0.2%) compared to the 2024 forecast. Expenditures are projected to be 39.6676 billion manat.

The document estimates the average annual export price of crude oil at $70 per barrel in 2025, which is $5 lower than the figure in the 2024 budget. In recent days, the price of a barrel of Azerbaijani oil has fluctuated around $75.

According to the budget draft, defense and security expenditures in Azerbaijan for 2025 are projected at 6.6583 billion manat. This represents a 6.6% decrease compared to the approved forecast for 2024.

It is also planned to increase expenditures in areas such as education, healthcare, social protection, culture, arts, information, physical education, youth policy, and other similar activities.

Malahat Ibrahimqizi, a deputy of the VI convocation of the Milli Majlis (National Assembly), told Turan that next year’s budget will be discussed during the fall session of the newly formed parliament: “For many years, Azerbaijan was focused on building a strong army to liberate its occupied territories. One of the main priorities was this. As a result, thanks to a strong economy, a powerful army, and the Supreme Commander, the 44-day war ended in our victory.”

Ibrahimqizi emphasized that the main focus of Azerbaijan’s state budget has always been defense, education, and social protection expenditures: “The war ended in 2020, and we restored our territorial integrity. But even during these four years, the President ensured that the most modern weapons for the Azerbaijani army were acquired. We are no longer in a warlike mindset. Our army has been fully established, and its supply and management are being brought up to NATO standards.”

According to her, from this perspective, next year’s budget will be fully oriented toward social welfare and the strengthening of the well-being of the Azerbaijani people: “One of the primary priorities of our budget has always been social welfare. From this point of view, next year’s budget can be called a ‘fully socially oriented budget.’”

Economist Natig Jafarli takes a slightly different view. He told Azadliq Radio that in Azerbaijan, a budget that includes expenditures on wages and pensions is often referred to as a “socially oriented budget.” According to him, this is because more than 40% of Azerbaijan’s budget is allocated to social projects: “This is somewhat outside international standards, as even the budgets of developed countries allocate around 40% to social expenditures. While Azerbaijan meets these standards, there is an issue with classification. Wages and pensions are obligations of the state and do not fall under the category of social expenditures.”

The economist argues that social infrastructure expenditures should be considered more as social costs: “Therefore, there is a need to change the classification and understanding of social expenditures in Azerbaijan. Expenditures that improve the social infrastructure, from libraries to road infrastructure and social projects aimed at improving people’s working and living conditions, should be considered social expenditures.”

According to Jafarli, although 40% of Azerbaijan’s state budget is spent on social payments, the budget is relatively small, meaning that the amounts allocated for salaries and pensions are also very low.