Lebanon Finance Minister presents 2027 budget as part of five-year reform plan

Lebanese Finance Minister Yassin Jaber presented the 2027 draft budget to the parliamentary Finance and Budget Committee, framing it as a key component of a medium-term, five-year fiscal and reform vision. The plan aims to protect monetary and financial stability, address state financial obligations, reform the banking sector, and facilitate the recovery of deposits.

Jaber stated that the strategy seeks to achieve primary surpluses between 2.5% and 3% of GDP, aligned with discussions held with the International Monetary Fund (IMF). This fiscal foundation is intended to enable public debt restructuring, the recapitalization of the Banque du Liban, and the restoration of economic confidence to attract investment.

The budget was developed amidst significant economic challenges, including regional conflict and domestic crises that caused at least $12 billion in material damage since 2024. Jaber noted an economic contraction of 5.2% in 2024, with an additional 7% contraction estimated for 2026. He also highlighted rising inflation, which reached 17% by the end of September, driven by increasing costs for energy, transport, and essential services.