SpecialLebanon’s 2027 draft budget targeting revenue surge as economy shrinks
- Lebanon's 2027 draft budget aims for tax revenue exceeding double that of 2024, set at $3.41 billion, although economists consider this target unrealistic amid a shrinking economy.
- The proposed budget of $6.87 billion represents a 14.2% increase from 2026, relying heavily on taxes for 85.9% of its revenue.
- The World Bank projects a 6.4% economic contraction for 2026, following a 4.2% growth in 2025, complicating revenue growth expectations.
- The draft budget proposes limited capital spending of $745 million, with wages and social benefits consuming over half of the allocated expenditures.
- The International Monetary Fund urges Lebanon to implement key financial reforms to secure financial assistance and address ongoing banking crisis losses.
- Economists warn that revenue growth is overstated as it relies mainly on higher nominal fees rather than true economic activity, affecting actual tax collection capacity.
