CBA chairman: Budget deficit financing in 2027 won't significantly impact inflation

Financing the deficit of Azerbaijan's state budget through domestic and external borrowings in 2027 is not expected to have a significant impact on inflation, Chairman of the Central Bank of Azerbaijan (CBA) Taleh Kazimov said.

According to Report, at today's meeting of the Milli Majlis Committee on Economic Policy, Industries, and Enterprising during the discussion of the 2027 budget package, Kazimov said the CBA positively assesses the macro-fiscal parameters developed for 2027 and the medium term.

He emphasized that the restrained growth and optimization of government spending, the gradual reduction of oil transfers, the increase in the share of non-oil sources in budget revenues, and the maintenance of the budget deficit and national debt at a manageable level are all aimed at strengthening fiscal sustainability.

He noted that improving the efficiency of budget expenditures will have a positive effect on the fiscal multiplier.

Kazimov added that in 2027, the state budget deficit is planned to be financed predominantly through domestic and external borrowings.