Azerbaijan's SOFAZ 2027 budget forecast shows surplus as state transfer falls

The State Oil Fund of Azerbaijan (SOFAZ) is forecast to run a surplus in its 2027 budget, with revenues expected to reach $7.8 billion (13.26 billion manats) and expenditures projected at $7.1 billion (12.07 billion manats). Minister of Finance Sahil Babayev announced the figures at a meeting of the Milli Majlis Committee on Economic Policy, Industries, and Enterprising while the 2027 budget package was being discussed.

According to Babayev, the strategic transfer from the fund to the state budget will be reduced next year. The transfer is expected to be $7 billion in 2027, which is $550 million, or 935 million manats, less than in the current year. He said the policy of reducing the transfer has been consistently implemented for the second year running.

For comparison, SOFAZ's 2026 budget revenues were forecast at 13.03 billion manats, 9.8% less than the previous year, while expenditures were expected to be 13.02 billion manats, an 11% decrease. The 2026 state budget provided for a transfer of 12.835 billion manats from SOFAZ, an 11.4% reduction compared to the approved forecast for 2025.