ANALYTİCAL ASSESSMENT OF OFF-BUDGET STATE FUNDS İN AZERBAİJAN FOR THE YEARS 2024–2025

Abstract

This article examines the financial sustainability, income and expenditure dynamics, and investment activities of extra-budgetary state funds operating in Azerbaijan—namely, the State Social Protection Fund, the Unemployment Insurance Fund, the Mandatory Health Insurance Fund, and the State Oil Fund— over the period 2024–2025. The research evaluates the composition of revenues, the structure of expenditures directed to social protection and healthcare systems, and the interrelations with the state budget based on statistical data and legal documents. The findings indicate that the role of these funds in ensuring macroeconomic stability, strengthening social welfare, and providing long-term financial resilience has been consistently increasing. Special emphasis is placed on the State Oil Fund’s investments in international financial markets, as well as the importance of the State Social Protection Fund and the unemployment Insurance Fund in financing social payments. At the same time, the introduction of mandatory health insurance has facilitated the formation of new financing mechanisms in the healthcare sector. The study concludes that enhancing transparency and efficiency in fund management, reducing 
investment risks, and stimulating capital inflows into the non-oil sector are essential measures. These findings underline the significant role of extra-budgetary funds in advancing Azerbaijan’s fiscal policy and reinforcing the foundations of a sustainable social state model.