While core expenditure on defence will increase by 3.3% to AZN1.838 billion (USD1.149 billion), the separate annual allocation for defence-related "special projects and activities" has not been included. This additional allocation, which is thought to represent the bulk of procurement expenditure, has been part of the Azeri budget since 2011 and has generally accounted for around 40% of total defence spending since then.

Azerbaijan has reduced state spending for 2016 as a result of falling revenues from the energy sector.