Although it is the third decade that Azerbaijan has been able to maintain balance in sectors that cannot meet its needs, as well as rationality in the state budget due to oil and gas revenues obtained with the involvement of foreign companies, currently, the decrease in revenues from this source creates fundamental problems for sustainable development. The lack of restrictions on the spending of oil and gas revenues, which have played an essential role in the economy of Azerbaijan in the past two decades, has led to an increase in the current expenditures of the state budget, as well as to the escalation of corruption in state investments made without ensuring accountability and transparency, leading to a decrease in the effectiveness of capital expenditures of the state budget. In the current condition, where access to unique financial sources formed outside the oil and gas sector is still limited, the national economy has again faced the effects of “twin deficits” and “spending of unearned money.” So, on the one hand, non-oil foreign trade, and on the other hand, the ratio of the summary budget’s non-oil base deficit to non-oil GDP is increasing, and Azerbaijan is not able to achieve the implementation of the target indicators defined in the “Strategic Roadmap 1 for the perspective of the national economy”, the implementation of which ended this year.
