Milli Majlis deputy Ali Masimli says the 2027 draft budget drops subsidies for 67 cities and districts, but education, healthcare and major infrastructure spending will keep being financed centrally.
Ali Masimli, a member of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, told Modern.az that the phased reduction of central budget transfers to cities and districts began back in 2013. According to him, 791.5 million manats was approved for this purpose in 2012, while the 2026 budget retains just 847,000 manats, earmarked solely for Khojavend district — a roughly 934-fold drop overall.
Overall revenues rise as local revenues shrink
The deputy stressed the need to distinguish between total revenues and revenues directed toward local spending. He said total revenues across cities and districts stood at 7.25 billion manats in 2021 and are projected to reach 18.43 billion manats under the 2027 draft budget.
Local revenues, however, are on a downward trend: 793.9 million manats in 2025, 758.8 million manats in 2026, and a projected 735.6 million manats in 2027. Masimli said this gap stems from changes in the structure of local spending rather than simply from districts’ growing economic capacity.
Teacher and doctor salaries paid from the central budget
Salaries for teachers, doctors and law enforcement staff working in the districts, as well as major infrastructure projects, are funded from centralized rather than local resources, the deputy said. What remains at the local level mainly covers the upkeep of executive authorities, landscaping and housing and utility services.
He noted that education and healthcare, which previously made up a large share of local spending, have been shifted to centralized expenditure, easing the burden on districts. Masimli described this as “relative self-financing.”
Of the 18.43 billion manats in total revenue projected for 2027, around 735.6 million manats will go toward local spending, while the remaining roughly 17.69 billion manats will be directed to centralized revenues.
Road, hospital and school construction to continue
The deputy stressed that the absence of subsidies does not mean a halt to the construction of roads, bridges, hospitals and schools under state programs in the regions, including the territories liberated from occupation. Covering local expenses and financing large-scale development projects are separate mechanisms, he said.
Masimli added that Article 10 of the draft budget allows for additional funding of up to 10% of a district’s local spending if local revenues prove insufficient. He described this as an insurance mechanism against possible shortfalls, adding that a sustainable model requires calculation rules based on districts’ real tax potential.
