Municipalities Achieve Positive Results in Increasing Local Budget Revenues

The improvement in the financial situation of municipalities – a growing trend in local budget revenues – continued in 2025. The work carried out by the Ministry of Justice, within the framework of measures to assist in organizing the activities of municipalities and with the participation of the National Associations of Municipalities, aimed at eliminating problems in the calculation and payment of local taxes and fees – which are among the main sources of local budget formation – demonstrates its impact on maintaining this positive dynamic.

This was stated in the information provided by the press service of the Ministry of Justice.

It is noted that, according to the information of the State Statistical Committee on the execution of municipal budgets for 2025, the budget revenues of municipalities across the country increased by approximately 3.3 million manats (5.2 percent) compared to the previous year, exceeding 65.6 million manats. Tax revenues to local budgets for 2025 were 7.2 million manats (26.5 percent) higher than in the previous year. Revenues for Baku municipalities, which accounted for 35.3 percent of total local budget revenues, increased by 16.4 percent compared to the previous year, exceeding 23 million manats.

It should be noted that, as a manifestation of state care for the institution of local self-government, last year, nearly 7.5 million manats in grants and subsidies were allocated to municipalities from the state budget.