Military readiness in peacetime as Azerbaijan boosts defense spending

Azerbaijan plans to allocate nearly 9 billion manats—equivalent to more than $5 billion—for defense and national security in its 2026 draft budget. The amount is 3.8% higher than the defense allocation in the 2025 budget.

For comparison, Armenia’s entire state budget for 2025 is around $7 billion at current exchange rates.

The increase raises questions: why is Azerbaijan expanding its military expenditures when it claims to have resolved all major issues with its longtime adversary, Armenia, and is officially pursuing peace?