Abkhazia's Cabinet Approves 2025 Budget Focused on Growth

SUKHUM / AQW'A — The Cabinet of Ministers has approved the draft law on the 2025 state budget,  aiming to strengthen economic growth and boost local revenues. Now awaiting the President's review, the proposed budget outlines key priorities in areas such as social and economic development.

The proposed budget for 2025 outlines the following figures:

• Total revenue: 17.36 billion rubles ($173.6 million)
• Total expenditure: 17.47 billion rubles ($174.7 million)
• Budget deficit: 109.53 million rubles ($1.1 million)

For the 2025 republican budget:

• Revenue: 13.15 billion rubles ($131.5 million)
• Expenditure: 13.26 billion rubles ($132.6 million)
• Republican budget deficit: 109.53 million rubles ($1.1 million)

Financial support from the Russian Federation will also play a significant role, with allocations including:

• 3.86 billion rubles ($38.6 million) for social and economic development in Abkhazia,
• 1.15 billion rubles ($11.5 million) for budgetary investments under the Investment Programme for Abkhazia’s socio-economic development (2023–2025),
• 100.5 million rubles ($1.0 million) for economic sector support under Abkhazia's 2022–2025 socio-economic development programme.

The deficit is expected to be financed through loans from the National Bank and other sources. The upper limit on Abkhazia’s domestic debt as of 1 January 2026 is set at 650 million rubles ($6.5 million), while the external debt limit is set at 926.38 million rubles ($9.26 million).

The republic’s internal borrowing programme for 2025 is proposed at 650 million rubles ($6.5 million), with 90.78 million rubles ($910,000) allocated to repay principal debt on a state export loan provided by Russia.

Vice-Premier and Minister of Finance Vladimir Delba presented the 2025 budget, stating that the projected revenue for the new fiscal year is set at 17.3 billion rubles ($173 million), with 12.1 billion rubles ($121 million) expected from Abkhazia’s own revenue sources. He highlighted that only four years ago, own revenue stood at 4.8 billion rubles ($48 million), marking substantial growth in local income forecasts.

Delba emphasized that this revenue growth was achieved without major changes to tax or business regulations, avoiding added burdens on entrepreneurs.

“The increase in the country’s own revenue is due to improved tax administration, higher trade turnover, and increased production of goods, services, and other outputs. Together, these indicators allow us to forecast new revenues with significant, steady annual growth,” Delba noted.

Compared to 2024, state budget revenue is expected to rise by 1.8 billion rubles ($18 million).