Azerbaijan proposes ₼4 billion for special defense projects

Azerbaijan’s draft 2027 budget proposes ₼4 billion for special defense projects, down 11.1% from ₼4.5 billion in 2026. Overall defense and national security spending is projected to rise by around 1.2%.

The draft says the special-project funding is intended to strengthen defense capabilities and improve the armed forces’ equipment and technical resources. It would be allocated in line with existing commitments and signed contracts, OC Media said.

Military housing support

The proposed housing and rent allocation is ₼29.7 million, down 41.2% from ₼50.5 million in 2026. The larger reduction would fall on housing provision for active-duty and reserve personnel who have completed at least 20 years of service. Rent compensation covers military personnel who do not own a home, including reservists and retired service members.

Reconstruction and the budget process

The proposed ₼3.4 billion Great Return allocation would fund reconstruction and development in territories Azerbaijan retook from Armenian control. The program covers towns and villages as well as roads, electricity, water, schools, hospitals and housing. The proposed amount is part of ₼5.3 billion in capital investment, with ₼1.9 billion for other projects.

The reconstruction proposal is below the allocations of ₼3.5 billion in 2026, ₼4.46 billion in 2025 and ₼4.86 billion in 2024.

The allocations remain proposals. Azerbaijan’s parliamentary Committee on Economic Policy, Industry and Entrepreneurship discussed the draft budget on 4 November 2026; the budget remains under parliamentary discussion.