Azerbaijan Plans to Boost Military Spending by Nearly 4% in 2026
In the wake of heightened tensions with Armenia following the end of the Second Nagorno-Karabakh War in 2020, Azerbaijan has announced plans to boost its defence and security budget. This decision comes at a low point in Azerbaijan's ties with Russia, strained by events such as the crash of an Azerbaijan Airlines flight in December 2024, which Azerbaijan blames on Russian air defence, and the deaths of two ethnic Azerbaijanis during a Russian police raid in Yekaterinburg in June 2025.
According to pro-government media outlet Report, the total state budget revenues for 2026 are expected to be ₼38.4 billion ($23 billion), with expenditures estimated at ₼42 billion ($24 billion). The specific weight of defence and national security expenditures in the budget will be 21%, according to APA. In 2026, Azerbaijan plans to increase its defence and security budget by an additional ₼1.738 billion ($1 billion).
The Finance Ministry has announced plans to increase the country's defence and security budgets by ₼318 million ($187 million) in 2026, reaching a total of ₼8.7 billion ($5.1 billion). Next year's defence and security budget was increased by ₼318 million ($187 million) from the current year, as reported by APA.
Since the initialing of the peace agreement between Armenia and Azerbaijan in August 2021, significant strides have been made in the peace process. However, Azerbaijani officials, including President Ilham Aliyev, have regularly accused Armenia of 'revanchism' and territorial claims against Azerbaijan. In contrast, Armenian Prime Minister Nikol Pashinyan stated that Armenia's defence may not see an increase in 2026, as peace has been established.
It is not explicitly stated who changed the budget for Azerbaijan’s defence and security for the year 2026. Former Finance Minister Samir Sharifov said in parliament in 2024 that Azerbaijan was increasing its military spending by President Ilham Aliyev's decree.
Repeated threats from Russian propagandists and some politicians have also raised concerns about potential attacks on Azerbaijan in the following months. The Kremlin has not made any official statements regarding these threats.
The increase in military spending is part of Azerbaijan's efforts to strengthen its military capabilities and ensure security in the region. The exact total defence and security budget for 2026 has not been disclosed, but it is expected to be a significant portion of the overall state budget.
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