Most of Azerbaijan’s forestry allocation will cover wages, audit chief says

Azerbaijan plans to allocate 21.3 million manats ($12.5 million) to forestry development in its 2027 budget, with 92% going to labour costs, despite targets to expand forest cover and urban green spaces, Audit Chamber Chairman Vugar Gulgammadov said on Friday.

Presenting the chamber’s review of the draft budget to parliamentary committees, Gulgammadov said it recommended that parliament consider the bill. The chamber also called for amendments to the Budget System Law provisions governing budget documents and disclosure of budget execution.

The budget package for next year includes, for the first time, a separate section on medium-term target indicators, the chamber said. Sections on budget policy goals for 2027-2030 and fiscal risks have also been expanded.

State budget revenues are forecast at 39.2 billion manats in 2027. The chamber said the projected increase was based on economic growth, inflation expectations, improvements in tax administration and proposed legislative changes.

Targeted budget funds were abolished under a presidential decree dated Sept. 10, 2026, and no separate revenue or spending forecasts for them are included for 2027. Road tax, payments for the use of natural resources and environmental fines are to be paid directly into the state budget from next year.

The chamber said the government should preserve the link between the funds’ former revenue sources and spending priorities and ensure continued financing for the relevant sectors. Healthcare is projected to account for 4.9% of state budget spending, while some state programmes will be financed through the Compulsory Medical Insurance Fund.