Lebanon 2027 budget and fiscal reform process

Lebanese Finance Minister Yassin Jaber presented the 2027 draft budget to the parliamentary Finance and Budget Committee, presenting it as a central element of a five-year fiscal reform plan. The strategy aims to achieve primary surpluses of 2.5% to 3% of GDP to facilitate public debt restructuring, banking sector reform, and the recovery of deposits, in alignment with International Monetary Fund (IMF) discussions.

Parliamentary discussions have commenced, with Committee Chairman Ibrahim Kanaan noting that while the government met the constitutional deadline for submission, the budget reflects a ‘theoretical accounting balance’ rather than a practical one. Kanaan expressed concern that the proposal relies on taxes and fees for 89 percent of its revenue and fails to address economic growth or debt restructuring.

Parallel to the budget debates, the Ogero workers' union has launched an open-ended strike. The labor action is a response to government privatization plans involving the establishment of ‘Liban Telecom,’ with employees demanding legal guarantees for their rights under Law 431/2002. Despite these domestic tensions, the Finance Minister described the atmosphere between the government, the Central Bank, and the IMF as ‘positive.’