7. Financing and support
Azerbaijan
Last update: April, 2025
The revenues of the state budget of the Republic of Azerbaijan for 2024 were approved at 36 388 000 000 AZN, while the expenditures were approved at 39 742 300 000 AZN by the Law On the State Budget of the Republic of Azerbaijan for 2024 (No.1028-VIQ of December 5, 2023). Compared with similar indicators for 2021, state budget revenues increased by 143.11%, and state budget expenditures increased by 139.24%.
In 2024, the country's Gross Domestic Product (GDP) was 126.3 billion AZN, representing a 135.95% increase from 2021. In 2024, GDP per capita was equal to 12 382.5 AZN, which is 133.59% more than the same indicator in 2021.
These macroeconomic indicators demonstrate the country's economy's continued progressive growth, which is naturally reflected in the macro indicators of public cultural expenditure. If the total public cultural expenditure allocated for the use of the Ministry of Culture in 2021 was AZN 379 326 086.0 (EUR 189 663 043.0), then in 2024, it was already AZN 538 438 646.5 (EUR 291 047 917.0), which is 141.95% more in AZN and 153.46% more in EUR equivalent (the strengthening of the AZN exchange rate over this period explains the difference in percentage in AZN and EUR equivalent).
Public culture expenditures at all levels of government per capita in 2024 were AZN 52.89 (EUR 28.59), significantly exceeding the 2021 figure of AZN 37.83 (EUR 18.92).
Public culture expenditure as a percentage of the GDP in 2024 was 0.43% (compared to 0.41% in 2021).
In 2024, public culture expenditures accounted for 1.35% of total public spending, compared to 1.33% in 2021.
Sources:
- The Law of the Republic of Azerbaijan "On the State Budget of the Republic of Azerbaijan for 2024" (No.1028-VIQ of December 5, 2023), https://e-qanun.az/framework/55872;
- The Law of the Republic of Azerbaijan "On the State Budget of the Republic of Azerbaijan for 2021" (No.233-VIQ of December 29, 2020), https://e-qanun.az/framework/46590;
- The Decree of the President of the Republic of Azerbaijan “On several issues related to the implementation of the Law of the Republic of Azerbaijan No. 1028-VIQ dated December 5, 2023 “On the State Budget of the Republic of Azerbaijan for 2024” (No.2424 of December 26, 2023), https://e-qanun.az/framework/55892;
- The Decree of the President of the Republic of Azerbaijan “On several issues related to the implementation of the Law of the Republic of Azerbaijan “On the State Budget of the Republic of Azerbaijan for 2021” (No.1241 of December 30, 2020), https://e-qanun.az/framework/46614;
- The State Statistical Committee of the Republic of Azerbaijan (https://www.stat.gov.az/news/index.php?lang=en&id=5100 https://www.stat.gov.az/news/index.php?lang=en&id=6145).
Last update: April, 2025
It should be noted that due to the decentralised budgetary expenditure on culture, most public funds are distributed locally. Moreover, the general trend is that the percentage changes over the years in favour of the regions. For example, in 2015, this ratio was 52.1% versus 47.9% in favour of the local budget and in 2024, this ratio was already 63.3% against 36.7% in favour of the regional budget.
Table 6: Public cultural expenditure by the level of government, 2024
Level of government |
Total expenditure in national currency (AZN) |
Total expenditure in EUR |
% share of total
|
Central
|
197 549 966.5 |
106 783 765.7 |
36.7% |
Regional |
340 888 680.0 |
184 264 151.3
|
63.3% |
TOTAL |
538 438 646.5
|
291 047 917.0 |
100% |
Sources:
- The Decree of the President of the Republic of Azerbaijan “On several issues related to the implementation of the Law of the Republic of Azerbaijan No. 1028-VIQ dated December 5, 2023 “On the State Budget of the Republic of Azerbaijan for 2024” (No.2424 of December 26, 2023), https://e-qanun.az/framework/55892;
- The Decree of the President of the Republic of Azerbaijan “On several issues related to the implementation of the Law of the Republic of Azerbaijan “On the State Budget of the Republic of Azerbaijan for 2021” (No.1241 of December 30, 2020), https://e-qanun.az/framework/46614.
The following table presents the figures for public cultural expenditures by level of government for 2021 and 2024, allowing for a trend analysis. Almost all indicators have grown significantly over the past few years, clearly demonstrating the general trend towards increasing budgetary attention to culture on the part of the state. Following the increase in total public cultural expenditures by 141.95%, regional expenditures grew by 134.83%, and central expenditures by more than one and a half times, at 156.16%.
Table 7: Comparison of public cultural expenditures by the level of government for 2021 and 2024
Level of government |
Total expenditure in 2021 (AZN) |
Total expenditure in 2024 (AZN) |
Trend in % |
Central |
126 504 173.0 |
197 549 966.5 |
156.16% |
Regional |
252 821 913.0 |
340 888 680.0 |
134.83% |
TOTAL |
379 326 086.0 |
538 438 646.5 |
141.95% |
Sources:
- The Decree of the President of the Republic of Azerbaijan “On several issues related to the implementation of the Law of the Republic of Azerbaijan No. 1028-VIQ dated December 5, 2023 “, On the State Budget of the Republic of Azerbaijan for 2024” (No.2424 of December 26, 2023), https://e-qanun.az/framework/55892
- The Decree of the President of the Republic of Azerbaijan “On several issues related to the implementation of the Law of the Republic of Azerbaijan “On the State Budget of the Republic of Azerbaijan for 2021” (No.1241 of December 30, 2020), https://e-qanun.az/framework/46614
Last update: April, 2025
Expenditures in the cultural sectors generally show an upward trend in connection with the country's overall economic development and the progressive increase in cultural budget allocations. In this regard, it should be noted that out of a total budgetary allocation of 538,438,646.5 AZN (100%), 404,721,143.0 AZN is allocated to wages (75.2%), 130,927,503.5 AZN to operating expenses (24.3%), and 2,790,000.0 AZN to investment expenses (0.5%).
Table 8: Direct state cultural expenditure and transfers (central level): by sector, 2024, in 1000 of national currency (AZN)
Field/Domain/Sub-domain |
TOTAL |
of which: Direct expenditure (of government or its agencies) |
of which: Transfers to other levels of government |
|
|
in 1000 AZN |
in % |
|
|||
I. Cultural Heritage |
|||||
Historical Monuments (State Service for the Protection, Development and Restoration of Cultural Heritage under the Ministry of Culture) |
4 905.7 |
0.91% |
4 905.7 |
- |
|
National Museum of History of Azerbaijan, National Museum of Azerbaijani Literature and Huseyn Javid’s House-Museum |
6 624.5 |
1.23% |
6 624.5 |
- |
|
Other museums and reserves |
37 470.9 |
6.96% |
16 786.8 |
20 684.1 |
|
Azerbaijan National Library named after M.F.Akhundzadeh |
7 832.7 |
1.45% |
7 832.7 |
- |
|
Other libraries |
60 039.6 |
11.15% |
1 945.4 |
58 094.2 |
|
Intangible Heritage / Folk Culture |
52 160.8 |
9.69% |
- |
52 160.8 |
|
II. Performing Arts |
|||||
Theatre and concert facilities |
53 899.9 |
10.01% |
51 985.1 |
1 914.8 |
|
International Mugham Centre |
2 108.5 |
0.39% |
2 108.5 |
- |
|
III. Audio-visual and Multimedia (audiovisual və multimedia) |
|||||
Cinema ("Cinema Agency of the Republic of Azerbaijan",public legal entity of the Ministry of Culture) |
10 500.0 |
1.95% |
10 500.0 |
- |
|
Expenses related to the preparation & broad-casting of the promotion of cultural programs |
1 004.0 |
0.19% |
1 004.0 |
- |
|
IV. Interdisciplinary |
|||||
Assistance to public associations |
7 438.3 |
1.38% |
7 438.3 |
- |
|
Awarding scholarships and awards to artists |
1 494.0 |
0.28% |
1 494.0 |
- |
|
Cultural Relations Abroad |
6 684.0 |
1.24% |
6 684.0 |
- |
|
Cultural centres in foreign countries |
9 352.6 |
1.74% |
9 352.6 |
- |
|
Administration |
11 740.8 |
2.18% |
7 367.5 |
4 373.3 |
|
Cultural Education |
205 482.8 |
38.16% |
4 210.7 |
201 272.1 |
|
V. Not covered by domains I-IV |
|
|
|
|
|
Centralised costs |
39 942.3 |
7.42% |
39 942.3 |
- |
|
Investment costs |
2 790.0 |
0.52% |
2 790.0 |
- |
|
Other expenses |
16 967.2 |
3.15% |
14 577.8 |
2 389.4 |
|
TOTAL |
538 438.6 |
100% |
197 549.9 |
340 888.7 |
Source: The Decree of the President of the Republic of Azerbaijan “On several issues related to the implementation of the Law of the Republic of Azerbaijan No. 1028-VIQ dated December 5, 2023 “On the State Budget of the Republic of Azerbaijan for 2024” (No.2424 of December 26, 2023, https://e-qanun.az/framework/55892
Last update: April, 2025
The government's approach to supporting artistic and creative workers in the Republic of Azerbaijan, as outlined by its cultural policy actors, is diversified and comprehensive at both the legislative and executive levels. General legislation, including social security, labour laws, and other relevant regulatory acts, build economic and social frameworks to support cultural and creative workers. Centralised and local state budgets support cultural creativity and artists in the country by providing the necessary conditions for maintaining cultural institutions, salaries, honoraria, and retirement and health benefits. The state supports creativity by involving artists in implementing state development strategies, programs, and projects and by supporting private projects and initiatives. Holding festivals and competitions in various cultural spheres for professionals (theatre, music, visual arts, etc.), sending delegations to international events, and providing free primary, secondary, and high special education should also be considered.
A very effective mechanism to directly support artists is the system of personal grants, awards, and scholarships implemented through decrees of the President of the Republic of Azerbaijan, such as On the establishment of personal pension of the President of the Republic of Azerbaijan (No.715 of June 11, 2002), On the establishment of the prizes of the President of the Republic of Azerbaijan for artists (No.707 of May 28, 2002), On honorary titles of the Republic of Azerbaijan (No.706 of May 22, 1998), On the State Care for Young Talents in Azerbaijan (No. 464 of June 22, 1996), On Special Scholarship Fund to Support the Creative Activities of Writers, Artists and Composers of the Older and Younger Generations (No.612 of August 6, 2007), as well as regular orders on awarding prominent figures of culture and art with high state awards comprising of medals, orders, honorary diplomas and state prizes.
Targeted support for particular culture and art forms is an approved approach to improving cultural financing; examples are the orders of the President of the Republic of Azerbaijan, such as those concerning the Azerbaijan State Symphony Orchestra named after Uzeyir Hajibeyli, the Azerbaijan State Choir Capella, the Ballet troupe of Azerbaijan State Academic Opera and Ballet Theatre, the Azerbaijan State Dance Ensemble, the Azerbaijan State Chamber Orchestra named after Gara Garayev, the Azerbaijan State Academic Opera and Ballet Theatre, the Azerbaijan State Musical Comedy Theatre, etc.
The legislative basis of the state grant support system, including in the field of culture, is represented by the Law on Grants (No.483-IQ of April 17, 1998), which regulates the economic and legal relations related to the receipt and use of grants. The law defines grants as assistance to develop and implement humanitarian, social, and ecological projects in various fields, including education, health, culture, legal advice, information, publishing, sports, scientific research, and other related areas. Other programmes essential for the state and public may also receive grants. The Agency for State Support to Non-Governmental Organizations of the Republic of Azerbaijan supports non-governmental organisations, including cultural ones. It organises grant competitions and evaluates initiatives, programs, and projects per the Rules for Registration of Grant Agreements (Decisions) (No.216, June 5, 2015).
In addition, the Ministry of Culture also has the right to issue grants to NGOs by the List of organisations financed from the state budget of the Republic of Azerbaijan and capable of providing grants to legal entities and individuals of the Republic of Azerbaijan by their areas of activity (No.654 of October 21, 2015), in connection with which it holds annual grant competitions for NGOs in the field of culture.
Additionally, the state financially supports the creative unions of Azerbaijani composers, artists, writers, architects, ashiqs, cinematographers, and theatre workers through the Ministry of Culture.
Last update: April, 2025
The Special Scholarship Foundation was established according to the Decree of the President of the Republic of Azerbaijan On Special Scholarship Fund to Support the Creative Activities of Writers, Artists and Composers of the Older and Younger Generations (No.612 of August 6, 2007) to ensure the implementation of the Orders of the President of the Republic of Azerbaijan On measures to improve the creative conditions of members of the Azerbaijan Writers' Union (No.2023 of March 12, 2007), On measures to improve the creative conditions of members of the Azerbaijan Artists' Union (No.2024 of March 12, 2007), and On measures to improve the creative conditions of members of the Azerbaijan Composers' Union (No.2025 of March 12, 2007). The Special Scholarship Foundation funds are directed to finance special scholarships for writers, artists, and composers of both older and younger generations, aiming to enhance state care for artists and to create more favourable conditions for the development of art in the country. The Special Scholarship Foundation is formed at the expense of the state budget and envisaged in the centralised expenditures of the Ministry of Culture.
The Decree on Special Scholarship Fund determines the number, amount and duration of special scholarships as follows:
- For the older generation, AZN 300 (three hundred manats) per month for one year, 50 scholarships for writers, 50 for artists and 30 for composers;
- For the younger generation, AZN 200 (two hundred manats) per month for one year, with 20 scholarships for writers, 20 for artists, and 10 for composers.
According to Rules for the use of a special scholarship fund to ensure the creative activities of writers, artists and composers of the older and younger generation" approved by the same Decree and which determines the mechanism for using the funds of the special scholarship fund, special scholarship holders are selected by the Azerbaijan Writers' Union, the Azerbaijan Artists' Union, and the Azerbaijan Composers' Union, respectively, from among the older and younger generations of writers, artists, and composers who are members of the organisation by decision of their general meetings. Thus, the Azerbaijan Writers' Union, the Azerbaijan Artists' Union, and the Azerbaijan Composers' Union submit the list of special scholarship recipients, approved by the decision of their general meetings, to the Ministry of Culture by March 1 every year. The list for subsequent years is formed based on the results of the one-year activity of special scholarship recipients.
Last update: April, 2025
The Republic of Azerbaijan has an impressive landscape of grants, awards, and scholarships for artists. Thus, to evaluate the services of Azerbaijani literary and artistic figures, as well as those who have made significant contributions to science, education, culture, economy, public administration and other fields of country, and to improve their social status, five hundred personal scholarships of the President of the Republic of Azerbaijan were established in the amount of 1,500 (one thousand five hundred) manats each following the Decree On the establishment of personal pension of the President of the Republic of Azerbaijan (No.715 of June 11, 2002).
To strengthen state care for artists and create more favourable conditions for the development of performing arts in the Republic of Azerbaijan, one hundred and fifty prizes of the President of the Republic of Azerbaijan for 500 manats per month each for leading artists (determined in the first quarter of each year) engaged in stage activities were established by the Decree On the establishment of the prizes of the President of the Republic of Azerbaijan for artists (No.707 of May 28, 2002).
The Decree On honorary titles of the Republic of Azerbaijan (No.706 of May 22, 1998) established the honorary titles of the Republic of Azerbaijan in the fields of culture, literature, science, education, health, physical education and sports, journalism, engineering, as well as civil service, law, agriculture and civil aviation. The sphere of culture and literature includes such honorary titles as "People's Writer", "People's Poet", "People's Actor", "People's Artist", "Honoured Art Worker", "Honoured Actor", "Honoured Artist", "Honoured Cultural Worker" and “Honoured Architect”. According to the Regulations on Honorary Titles of the Republic of Azerbaijan (No.130 of May 14, 1999), honorary titles are awarded for exceptional services in culture and literature, outstanding professional achievements, and active participation in public life. Individuals awarded the honorary title of the Republic of Azerbaijan are entitled to the privileges established by law. In addition, they are awarded lifelong stipends according to the Decree On Granting Monthly Scholarships for Honorary Titles (No.878 of July 4, 2005). According to the 2024 statistics, 252 persons are paid a monthly scholarship of 200 manats for the honorary title "People's", and 4,539 persons receive a monthly pension of 150 manats for the title "Honoured".
Prominent figures of culture and art are awarded high state awards on a regular basis: thus, in 2023-2024, two persons were awarded the "Glory" Order, two persons were awarded the "Labour" Order, three persons were awarded the "Honour" Order, 32 persons were awarded the "100th Anniversary of Heydar Aliyev (1923-2023)" jubilee medal, five persons were awarded the Honorary Diploma of the President of the Republic of Azerbaijan, and one person was awarded the State Prize.
The "Golden Book" of young talents of Azerbaijan, the "Young Talents Foundation", and a special monthly scholarship of AZN 400 was established by the Decree of the President of the Republic of Azerbaijan On the State Care for Young Talents in Azerbaijan (No.464 of June 22, 1996). The renewed Regulations on the 'Golden Book' and special scholarships for young talents (No.2368 November 30, 2023) define that The Golden Book and Scholarship were established to provide citizens of the Republic of Azerbaijan aged 10 to 25 with exceptional abilities in the field of culture with the personal patronage of the President of the Republic of Azerbaijan and state care for developing their creative potential. The scholarship is awarded to the individual for three years from the date their name is entered in the Golden Book and is disbursed monthly in the amount of 400 AZN until they reach the age of 25.
The Ministry of Culture also announces grant competitions for non-governmental organisations. Thus, in 2023-2024, 320 projects were submitted to the competitions, of which 52 were selected and awarded grants totalling AZN 620,000.0 (EUR 337,025.6). The projects supported within the framework of grant competitions covered the protection of cultural heritage and its transmission to future generations, support for cultural and creative industries, the return of culture to the territories liberated from occupation, the development of volunteerism in the field of culture, the study, research, and promotion of the historical and cultural heritage of Western Azerbaijan, support for archival heritage, international promotion of Azerbaijani culture, cultural development of people and society, and other topics.
Last update: April, 2025
Professional creative unions currently obtain their centralised funds and material-technical bases, including buildings, from the state system but administer material, social and professional matters themselves without state interference. Central and local authorities provide different organisational and financial support to creative unions, involving their members in national and international events and regularly purchasing products of their art and creativity. In particular, special funds from the state budget are intended to support professional creative unions and other non-governmental organisations through the Ministry of Culture.
For example, AZN 7,438,312 was sent from the state budget of 2024 to support such organisations as:
- The Azerbaijan Composers' Union;
- The Azerbaijan Artists' Union;
- The Azerbaijan Writers' Union;
- The Azerbaijan Architects' Union;
- The Azerbaijan Ashiq Union;
- The Azerbaijan Cinematographers' Union;
- The Azerbaijan Theatre Workers' Union;
- The Azerbaijan Red Crescent Society;
- The "Azerbaijan World" International Relations Centre;
- The Azerbaijan Elders' Council;
- The Azerbaijan Republic Organization of War, Labour and Armed Forces Veterans;
- The Azerbaijan Children's Fund.
In this regard, it should be noted that the volume of financial support for professional creative unions and other non-governmental organisations is growing in correlation to the overall development of the Azerbaijani state. Thus, in 2020, the amount of similar support was 5,523,650 manats.
The state seriously considers providing financial support to professional creative unions and other non-governmental organisations and does not allow delays in transferring allocated budgetary funds. For instance, by the relevant paragraph of the Decree of the President of the Republic of Azerbaijan On several issues related to the implementation of the Law of the Republic of Azerbaijan No. 1028-VIQ dated December 5, 2023, “On the State Budget of the Republic of Azerbaijan for 2024 (No.2424 dated December 26, 2023), the Ministry of Culture must distribute the funds provided for in the subsection on Financial Assistance to Non-Governmental Organizations of this Decree among the relevant organisations within 20 days by coordinating with the Ministry of Finance and ensure payments following the distribution. This state approach and requirement is implemented as a normative practice annually.
Last update: April, 2025
Attracting alternative financing sources (sponsors, supporters, etc.) and implementing up-to-date marketing to improve the system of paid cultural services are key components of the state's strategy for diversifying funding sources for cultural activities and policies.
One of the priority areas is attracting additional financial resources for repairing and restoring monuments in a state of emergency, as well as implementing the Public-Private Partnership model to carry out the planned works. For instance, the State Service for the Protection, Development, and Restoration of Cultural Heritage, under the Ministry of Culture of the Republic of Azerbaijan, cooperates with relevant private sector representatives in various directions. Necessary measures are being taken to involve the private sector in restoring monuments in different regions of the country. Thus, the historical monument, "Seminary Building," located in the Gazakh district, was repaired and restored at the expense of "PMD Projects" LLC, and the Gazakh Centre of ADA University's activities were organised there.
To take advantage of the opportunities for public-private partnership in the field of protection, restoration and effective use of our cultural heritage after restoration and to hold joint discussions with entrepreneurs, the State Service has initiated cooperation with the National Confederation of Entrepreneurs (Employers) Organizations of the Republic of Azerbaijan, and initially, information on 52 monuments was provided.
Currently, necessary work is being carried out to restore some monuments with the financial support of the Turkish Cooperation and Coordination Agency Baku Program Coordination Office, the International Turkic Culture and Heritage Foundation, the Public Union of Turkish and Azerbaijani Businessmen and Industrialists, and the Karabakh Revival Fund. Private sector representatives have already submitted official applications, or letters of intent, to the State Service to restore certain monuments.
Another direction in this sphere is cooperation with individuals and legal entities that own or use monuments. In 2023-2024, 290 protection agreements were concluded with individuals and legal entities that own or use monuments in the Republic's territory. Additionally, 46 projects regarding the repair and restoration of monuments in private ownership, at their owners' expense, were received from their users.
Many activities in the arts and culture, including festivals, concerts, and fairs, both international and local, attract a significant share of sponsorship from the private sector. Furthermore, funds, banks, and other financial institutions operating in the country provide considerable subsidies to assist and promote the mobility of artists and artworks. However, private funding statistics are unavailable as studies, surveys, and similar research on private funding for culture have not yet been conducted.
Paid cultural services, namely the sums earned by cultural organisations, e.g., fees charged for paid cultural services provided by museums, exhibition halls, and libraries, are another means by which public cultural institutions can self-finance, and this method is becoming increasingly important. The state cultural institutions, which are subordinated to the Ministry of Culture, provided paid cultural services for AZN 4.252 million in 2024, two and a half times more than in 2022 (AZN 1.686 million). Traditionally, the leading providers of paid cultural services have been museums, educational institutions, cultural centers, and clubs. However, these sums are still insignificant, accounting for less than 1% of public expenditure on culture, the arts, and monument conservation.