Baku: Azerbaijan's state budget has recorded significant allocations in the first half of 2026, with defense and national security spending exceeding 3.4 billion manats. During the January-June period, financing from the state budget was provided in full and on time for essential state functions, including salaries, allowances, pensions, and the reconstruction and restoration of liberated territories, among others, as reported by APA-Economics, citing the Ministry of Finance.

According to Azeri-Press News Agency, state budget expenditures amounted to 16.7755 billion manats in the first six months of 2026, representing 40.2% of the annual projected state budget expenditures. Of this, 69.4% was allocated to current expenditures, totaling 11.6425 billion manats, while 25% or 4.1882 billion manats was designated for capital expenditures, and 5.6% or 944.8 million manats was used for public debt servicing.

Social spending accounted for 52.4% of total state budget expenditures, amounting to 8.7871 billion manats. This figure represents an increase of 951.3 million manats, or 12.1%, compared to the corresponding period in 2025. The social spending covered wages, food procurement, scholarships, social benefits, medicines, medical supplies, and compulsory health insurance.

The functional classification of expenditures for the first half of 2026 indicates that 3.4374 billion manats were allocated to defense and national security, while other significant allocations included 2.578 billion manats to economic affairs, 2.4001 billion manats to education, and 2.3598 billion manats to social protection and social security. Additional allocations comprised 2.3395 billion manats for general public services, 1.4037 billion manats for the judiciary, law enforcement, and prosecution authorities, and 669.4 million manats for services not classified under the main categories. Other sectors such as healthcare, agriculture, culture, environmental protection, and housing also received designated funding in varying amounts.