The Council of Ministers approved the draft 2026 state budget Monday evening, with officials emphasizing fiscal discipline, revenue compliance and accountability.
Information Minister Paul Morcos stated that the budget includes no new broad-based taxes, relying instead on stricter enforcement of existing laws and improved revenue estimation. One of the most contentious items was Article 31, which was amended to impose a 3% tax only on importers who failed to submit proper tax declarations.
The 3% tax has sparked concern among business groups over its enforcement and fairness before the amendment.
Despite such revenue measures, there will be no across-the-board salary adjustments for public sector employees and retirees in 2026, Morcos said. He added that while the budget framework doesn’t allow blanket pay increases, the government is exploring other initiatives aimed at improving wages.
Every expenditure line has been matched with projected revenue in the draft to avoid any deficit, Morcos said. Administrative Development Minister Fadi Makki summed up the approach in one phrase: “From taxes.”
The session also noted symbolic and political developments. Ministers observed a minute of silence for victims of the Israeli raid on Bint Jbeil, calling it a “flagrant violation” of the ceasefire agreement. Prime Minister Nawaf Salam announced that next month the government will launch the “Serail Debates,” a televised forum on Télé-Liban for direct dialogue with citizens.
The draft budget will be submitted to Parliament within constitutional deadlines, Morcos emphasized.
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