Budget 2026: Balancing Fiscal Discipline and Social Promises in Lebanon
Press, military, taxation: Cabinet continues 2026 budget talks, pledging balance between revenues and social needs. ©Al-Markazia

The Council of Ministers resumed discussions on the 2026 draft budget on Friday, under the chairmanship of Prime Minister Nawaf Salam.

Ministers who had not yet reviewed the funds allocated to their portfolios presented their remarks, including the Ministers of Environment and Tourism. Debate also centered on several articles left unresolved in previous sessions, particularly Article 35, which was amended to preserve tax exemptions for print newspapers, magazines and books.

Another key issue was the crackdown on shell companies set up to evade customs duties and artificially inflate profits. The government also aims to broaden the tax base to curb widespread evasion. “The goal is to draft a finance law that does not place additional burdens on citizens, while ensuring proper collection and budget balance,” Minister of Information Paul Morcos stated after the meeting.

Social demands, particularly from military personnel and teachers staging repeated protests, were also discussed. The government pledged to respond to these “necessary and legitimate” needs while avoiding a repeat of the costly past salary scale reform. Securing adequate funding without adding to public debt or widening the deficit remains the main challenge.

Decisive Session on Monday

As the draft budget is not yet finalized, particularly on the revenue side, a new session has been scheduled for Monday at 3 PM at the Grand Serail.

When asked about potential parliamentary amendments, the minister noted that the Chamber has full authority to revise the 2026 draft budget, either in committee or in plenary session. “But we hope adjustments will be made upstream, within the government itself, so we can present as complete a text as possible,” he said.

The minister also confirmed that commitments to the military would be honored through regular payments, while reaffirming the government’s determination to secure resources without jeopardizing financial stability.

Meanwhile, the Council of Ministers addressed the security situation. High-level political contacts were undertaken involving the presidency and Lebanon’s diplomatic corps, as the UN issued a statement, through UNIFIL, condemning Israeli violations. “While absorbed by budget discussions, the government is not ignoring these issues and continues its efforts to contain the aggressions,” Morcos stressed.

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