While Azerbaijan plans to increase its defense and national security spending for 2026, the government plans to gradually decrease this budget item by 2030 to AZN 7.969 billion (US$ 4.69 billion).

The budget for defense and national security will rise to AZN 8.715 billion (US$ 5.1billion) in 2026, marking a 3.8% increase over 2025. This follows a record US$ 5 billion allocation in 2025.

The share of defense and national security within the total state budget is expected to drop from 20.9% in 2026 to 18.4% by 2029. 

Baku also plans to invest AZN 13.5 billion (US$7.9 billion) for the Karabakh and East Zangezur economic regions between 2026-2029.

According to ministry, in 2026 it is expected that 88.1% of the current expenditures of the country’s state budget will be covered by non-oil and gas revenues. This figure is projected to increase to 95.2% in 2027, 98.7% in 2028, and 101.5% in 2029.