Azerbaijan: $2 billion Military Budget

The Associated Press reports that Azerbaijan’s military budget is set to hit $2 billion this year, up from $1.3 billion in 2007. Although few analysts believe renewed fighting between Armenia and Azerbaijan is imminent, the move can still be seen as brinkmanship. Others are critical of the fact that oil revenues are being diverted to military spending rather than much-needed social programs.

“The increase of military spending should not be analyzed out of context. We must not forget that we are in a state of war,” Aliev said, according to the news agency.

The planned increase is in line with the growth of the state budget, Aliev said.

“Certain international organizations criticize us for building up our military capabilities. What they don’t understand is that, over the last four years, the state budget has risen tenfold,” he said.

Exports from the country’s vast Caspian Sea oil and gas reserves have helped lift Azerbaijan’s economy since the Soviet collapse, and propelled an aggressive upgrade of its armed forces.