The state budget surplus amounted to 7% of GDP

In the first months of 2024, Azerbaijan demonstrated financial stability, as evidenced by a significant state budget surplus of 1 billion 302 million manats, or 7% of the country's gross domestic product (GDP) for January and February. This figure is especially noteworthy given the surplus of 1 billion 742.2 million manats in January alone, which is an astounding 19.1% of GDP for this period.

Operational data from the Ministry of Finance indicate an astonishing 11.5% increase in state budget revenues in January-February 2024, amounting to 6 billion 555 million manats compared to the same period in 2023. At the same time, Azerbaijan's nominal GDP for the same period amounted to 18 billion 576.9 million manats, which once again underlines the viability of the country's economy.

As for expenses, in January-February 2024 there was a significant increase of 43.5%, amounting to a total of 5 billion 253 million manats. Such an increase in spending implies a targeted budget expansion strategy, possibly aimed at stimulating economic growth, strengthening infrastructure and investing in social services.

Looking ahead, it should be noted that the state budget of Azerbaijan for 2024 provides for revenues of 34 billion 173 million manats against expenditures of 36 billion 763 million manats, which indicates a planned deficit of 2 billion 590 million manats, or 2.2% of GDP. This projected deficit, although different from the initial surplus, is relatively modest and within manageable limits. It reflects a strategic approach to budget planning, in which deficits are used to finance development projects and strategic investments that potentially stimulate long-term economic growth.