Baku:Azerbaijan is expected to achieve a general government budget surplus in both 2026 and 2027, according to a forecast by Fitch Solutions.

According to Azeri-Press news agency, the surplus is predicted to reach 2.4% of GDP in 2026 and 2.2% in 2027. This positive fiscal outlook is attributed to higher-than-expected budget revenues in late 2025 and the first half of 2026, prompting Fitch Solutions to revise its previous expectations.

The improved fiscal indicators are largely due to increased oil and gas revenues driven by high global energy prices, prudent fiscal management, and rising tax revenues from the non-oil sector. The 2026 state budget reflects measures aimed at enhancing fiscal sustainability, particularly by boosting non-oil revenues and reducing reliance on the State Oil Fund of the Republic of Azerbaijan.

Fitch Solutions forecasts that non-oil revenues will make up 57.4% of state budget revenues in 2026, which signifies progress towards broadening the revenue base and creating more stable financing sources. The government's conservative approach to oil price assumptions in budget planning also offers a buffer against external market volatility, further supporting Azerbaijan's fiscal stability.