Abstract
<jats:p>Formulation of the problem. It analyzes the priorities of state budget policy in the reconstruction of the territories liberated from occupation in the Republic of Azerbaijan, especially the Karabakh and Eastern Zangezur economic regions. In this regard, the purpose of the study is to develop budget policy priorities in the process of renovation of liberated territories. The object of the study is the socio-economic relations that arise in the process of transforming the traditional economic system towards a green economy and sustainable development. The subject of the study is the theoretical and methodological foundations, economic instruments, mechanisms of state regulation and institutional conditions that ensure the transition to a green economy. The methodology of the study consists of examining the experience of countries around the world in diversifying economic development and, based on these experiences, analyzing issues related to determining the role of agritourism in diversifying economic development. The main hypothesis of the study. It is assumed that the transition to a green economy is not only an imperative of environmental safety, but also a powerful driver of long-term economic growth based on innovation, energy efficiency and the creation of new "green" jobs. The effectiveness of this transition depends on the synergy between clear state policy, private investment and civil society activity. Presentation of the main material. Based on state budget data for 2021–2025, the study evaluates the volume, structure, and main directions of budget expenditures in the restoration and reconstruction process. The article examines the role of the state budget in financing infrastructure projects, restoring social facilities, and supporting the socio-economic reintegration of the regions. The originality of the work. The analysis shows that the state budget acts as the main financial instrument for ensuring regional development in the post-conflict period, and the funds allocated to this area are among the strategic priorities of fiscal policy. The dynamics and structural distribution of budget expenditures indicate that, in line with the state’s long-term development strategy, spending is directed toward infrastructure restoration, increasing economic activity, and integrating the liberated territories into the national economic system. Conclusions and prospects for further research. The study examined the priorities of budget policy in the reconstruction of the territories liberated from occupation in the Republic of Azerbaijan. The analysis shows that the state budget is mainly directed toward the restoration of infrastructure, social facilities, and residential complexes.</jats:p>