Syria Records $1 Billion First-Half 2026 Budget Deficit as Spending Outpaces Revenue

In a disclosure that is the first of its kind, the Ministry of Finance of Syria published yesterday, Monday, a detailed report on the state general budget for the first half of the current year 2026, in which it disclosed revenue and expenditure and the deficit fractions. Total public revenues amounted to about 2.7 billion dollars, representing 31% of the estimated budget revenues, while public spending reached about 3.7 billion dollars, i.e., 35% of approved expenditures, resulting in a financial deficit of one billion dollars. A comparison with the first half of 2025 shows revenues rising by 111%, while the spending rate increased by 331%. Customs duties top the revenues list, accounting for 40% and about 1.1 billion dollars, followed by returns from state investments at about 763 million, then oil and gas revenues at about 601 million, with taxes and fees last at only 9% and 252 million dollars. The monthly average of revenues was about 449 million dollars. According to the Finance Ministry, revenues, especially tax revenues, typically increase during the second half of the year, with estimates that total revenues by year-end may approach about 8 billion dollars. 36% of spending is on salaries and wages, according to the budget published by the Syrian Finance Ministry, as the total public spending in the first half of 2026, estimated at about 3.7 billion dollars, had an average monthly of about 617 million. Public spending is mainly distributed between salaries and wages at 36% amounting to 1.34 billion dollars, followed by administrative expenses at 1.03 billion, investment expenses at about 1.02 billion, and subsidies and social security at 9% worth 315 million dollars. The first-half numbers for 2026 point to three main indicators in the path of Syria’s public finances, according to Syrian researcher in local administration and political economy Ayman Al-Desouki to Syria Now. The first is the noticeable improvement in public revenue collection after years of weak resources and financial deficits, while the second indicator shows a broadening of public spending at a pace faster than revenue growth, leading to a widening of the fiscal gap. The third indicator, according to the researcher, is the diversification of the revenue structure, especially with the growing contribution of oil and gas, alongside the emergence of investment spending within the structure of public spending, even though current spending remains dominant. Reliance on oil and the mobile operator began with oil revenue and gas receipts to the Ministry of Finance from May, while proceeds from selling a license for the second mobile operator were not reported in the first half of the year, which means, according to the Finance Ministry, that the period’s results do not reflect the full expected revenue for the year. These resources will contribute to supporting revenues in the second half of the year, but the final result will remain tied to the volume of oil revenues and the timing of exceptional revenues. The researcher Al-Desouki, in his interview with Syria Now, said that the oil and gas sector could become an important source for the state treasury in the second half of 2026, but its ability to contribute to covering the fiscal deficit remains linked to several factors, the most prominent of which are the actual production volume, the cost of rehabilitating fields and facilities, global oil prices, and the state’s net share of investment revenues. Al-Desouki believes that the most important thing is not to focus on a resource rent, but rather that the financial policy should be based on diversifying oil and non-oil revenues alike, expanding the productive base, tightening public spending and reorganizing it to enable an increase in the share of investment spending that stimulates economic recovery at the expense of current expenditure. The deficit amounts to one billion The fiscal deficit in the first half of the current year reached about one billion dollars, equal to 56% of the total annual deficit projected at 1.8 billion dollars, and it was managed through short-term investment financing repaid within one year, which minimizes its impact on the economy, according to the Ministry of Finance. The researcher expects the rise in public spending to outpace revenues to be linked to a set of exceptional factors related to the phase of rebuilding the state, foremost among them the redeployment of state institutions across the entire Syrian geography, and the operational costs and increase in the wage and salary bill. The salary-increase decrees during 2026 also contributed to rising current expenditures, alongside higher costs of goods and services under the impact of regional developments and crises, according to the researcher. Economy adviser Osama Al-Qadi believes that the deficit of one billion dollars is due to the state having emerged from war and being in an economic contraction, and that the matter is still under control in the first half of this year. In an interview with Syria Now, the advisor said that one reason for the deficit is the restarting of government institutions and spending on infrastructure, in addition to the costs of importing oil and gas since Syria has not yet achieved self-sufficiency; he added, revenues from customs and border outlets should be increased and selling more oil and gas with boosting investment activity to ease the deficit.

RIYADH: Syria recorded a fiscal deficit of about $1 billion in the first half of 2026 as public spending outpaced revenue amid higher wages, rising import costs and increased expenditure on government priorities. Public revenue reached approximately $2.7 billion during the period, compared with expenditure of $3.7 billion, Finance Minister Mohammed Barnieh said in the ministry’s first-half budget performance report, according to Syrian Arab News Agency. The government collected about 31 percent of its estimated annual revenue while executing 35 percent of approved expenditure. Those rates imply full-year revenue and spending allocations of approximately $8.7 billion and $10.6 billion, respectively, according to calculations based on the ministry’s figures. Revenue increased by about 111 percent compared with the first half of 2025, while spending rose by approximately 331 percent. The ministry attributed the faster expenditure growth primarily to salary and wage increases, expanded spending on government priorities, and higher costs for goods, services, and production inputs, driven by regional developments and rising import prices. “We expect spending to increase during the second half of the year as the full impact of salary and wage increases is felt, and project implementation and investment spending accelerate, particularly to support affected areas,” Barnieh said. Fiscal outlook Oil and gas revenue began flowing to the Finance Ministry in May, according to Barnieh. Higher hydrocarbon receipts, improved tax and customs collection and some exceptional revenue are expected to strengthen Treasury resources during the second half. The International Monetary Fund said in August that Syria’s central government budget ended 2025 with a small surplus after expenditure was restricted to available resources and focused on essential needs. The fund expects revenue to rise substantially in 2026, supported by stronger tax and customs receipts, increasing hydrocarbon income and one-off revenue from telecommunications licenses and fuel transit fees. However, it said financing constraints could require the government to limit capital spending. The IMF also called for stronger oversight of off-budget operations, quasi-fiscal activities and contingent liabilities, alongside tax reforms and improvements to tax and customs administration. Syria’s Finance Ministry is preparing the 2027 state budget and aims to complete the process before the end of the third quarter, with planned improvements to budget preparation, implementation and digitalization. Sovereign fund agreement Separately, the state-owned Syrian Sovereign Fund and UAE developer Arada signed a joint-venture agreement for the $7 billion New Damascus development. The project will cover 4 million sq. meters west of Damascus and include 11,000 homes, hospitality and retail facilities, schools and healthcare infrastructure. The $7 billion figure represents the project’s estimated gross development value rather than a direct payment to the Syrian government.

NewsAugust 31, 2026 at 7:16 pm Syria’s treasury had quite the financial adventure in the first half of2026, seeing a significant revenue boost. However, a massive surge in government spending, especially on those public paychecks, quickly outpaced the gains. This left the nation grappling with a heftybillion-dollar deficit, making for a truly dramatic economic storyline. Get this: public revenues absolutely soared by111%, hitting a cool$2.7 billionin just the first six months of2026! TheCentral Bank of Syriawas buzzing about this major revenue increase, which got a huge push from$1.1 billionin customs fees. Plus, a sweet$601 millionflowed in from oil and gas revenues, really giving the treasury a much-needed shot in the arm. Don’t miss today’s episode of The Lovin Damascus Show podcast, now available in bothArabicandEnglish But hold on to your hats, because while revenues were climbing, public spending went on an even wilder ride, surging by a staggering331%to reach$3.7 billionin that same first half of2026! The biggest slice of this pie, a whopping$1.34 billion, was dished out for salaries and wages, thanks to some recent pay increases. Then came$1.03 billionfor administrative spending and another$1.02 billionpoured into investment spending, showing where all that cash was really going. Recommended Click here to join the Lovin Damascus WhatsApp Channel So, what happens when spending goes super-speed and revenue just can’t keep up? Syria found itself staring down a budget deficit of roughly$1 billionby the end of the first half of2026. It’s like trying to fill a bucket with a hole in it – the money was coming in, but it was flying out even faster, creating a significant financial gap. This situation really highlights the tricky balancing act of managing the nation’s finances when both income and expenses are on the rise, but at very different paces. Looking ahead, the government is crossing its fingers, expecting more oil and gas revenues to make their way to the treasury in the second half of the year. They’re even hoping total revenues will approach a grand total of$8 billionby the time2026wraps up. This optimistic forecast fromlovin damascusgives us a peek into the government’s strategy for hopefully turning the tide and getting those books back in balance. Read next:«حين تتكلم الجدران» في معرض دمشق الدولي: تسليط الضوء على واقع المعتقلات في عهد الأسد Shopping11 months ago Shopping11 months ago Décor12 months ago News38 minutes ago News1 day ago Community1 day ago Community1 day ago

In the first half of 2026, Syria’s state budget recorded a deficit of USD 1 billion, with revenues at  over USD 2.69 billion and expenditures at USD 3.7 billion, according to figures published by theMinistry of Financeon Monday. The results from the first six months point to a significant expansion in government expenses and revenues. Fiscal revenues doubled compared to the same period last year, thanks mostly to a surge in oil and gas revenues. However, expenditure expanded at a much faster pace, shifting public finances from a surplus in the first half of 2025 to a deficit during the same period in 2026. You must be a Standard subscription member to access this content. Join Now In the first half of 2026, Syria’s state budget recorded a deficit of USD 1 billion, with revenues at  over USD 2.69 billion and expenditures at USD 3.7 billion, according to figures published by theMinistry of Financeon Monday. The results from the first six months point to a significant expansion in government expenses and revenues. Fiscal revenues doubled compared to the same period last year, thanks mostly to a surge in oil and gas revenues. However, expenditure expanded at a much faster pace, shifting public finances from a surplus in the first half of 2025 to a deficit during the same period in 2026. You must be a Standard subscription member to access this content. Join Now

The Minister of Finance, Mohammed Yser Bernia, announced today, Monday, the publication of the financial performance report for the state general budget for the first half of 2026. In a post on his personal Facebook page, the minister said this comes as part of the ministry’s ongoing approach to strengthen transparency and disclose the state of public finances, making financial data and information available to citizens and stakeholders. According to the minister, total public revenues in the first half amounted to about $2.7 billion, while total expenditures were about $3.7 billion, resulting in a fiscal deficit of about $1 billion. This represents the execution of roughly 31% of the estimated annual revenues, against the execution of about 35% of the total approved expenditures. Compared with the first half of 2025, public revenues rose by about 111% while total spending rose by about 331%, reflecting a primary driver of higher spending: increases in salaries and wages, expanded spending on government priorities, as well as higher costs for a range of goods and services and inputs due to regional developments and higher import prices. The minister noted that the flow of oil and gas revenues to the Ministry of Finance began in May, and he also expects that in the second half of the year oil revenue, improved tax and customs collection, and some extraordinary revenues will contribute to strengthening the resources of the general treasury. On the spending side, the minister said that a higher pace is expected in the second half as the full effect of salary and wage increases becomes evident, projects and investment spending accelerate, especially to support affected areas, while the ministry continues to prioritize spending, manage liquidity, and finance within available resources while maintaining financial discipline. This report is the third issue in the financial disclosure series started by the ministry with publishing the 2025 financial performance report, then the 2026 Citizen’s Budget, and through it the ministry continues the transition from publishing the approved budget to publishing its actual implementation results on a periodic basis. The minister concluded by saying: “We are committed to enhancing financial disclosure so that every Syrian citizen knows what enters the budget, where these resources are directed, and how their implementation evolves over the year.” The minister’s post also noted the possibility of using a specific link to access the report referenced above. The Ministry of Finance, Mohammed Yser Bernia, announced today, Monday, the publication of the financial performance report for the state general budget for the first half of 2026. In a post on his personal Facebook page, the minister said this comes as part of the ministry’s ongoing approach to strengthen transparency and disclose the status of public finances, and to provide data and financial information to citizens and stakeholders. According to the minister, total public revenues in the first half amounted to about $2.7 billion, while spending amounted to about $3.7 billion, leaving a fiscal deficit of about $1 billion. This represents the execution of roughly 31% of the estimated annual revenues, versus around 35% of total approved expenditures. Compared with the first half of 2025, public revenues rose by about 111% while total spending rose by about 331%, reflecting that spending growth mainly stems from higher salaries and wages, expansion of spending on government priorities, and the rising cost of a number of goods, services, and inputs due to regional developments and higher import prices. The minister pointed out that oil and gas revenues flowing to the Ministry of Finance began in May, and it is expected that in the second half of the year oil revenues will contribute, along with improved tax and customs collection and some exceptional revenues, to strengthen the resources of the general treasury. On the spending side, the minister said that the pace is expected to rise in the second half as the full effect of salary and wage increases becomes apparent, and as project implementation and investment spending accelerate, especially to support affected areas, with the ministry continuing to prioritize spending, manage liquidity, and finance within available resources while maintaining financial discipline. This report is the third in the financial disclosure series started by the ministry with the publication of the 2025 financial performance report, followed by the 2026 Citizen’s Budget, and through it the ministry continues to move from publishing the approved budget to publishing the results of its actual implementation on a periodic basis. The minister concluded by saying: “We are committed to enhancing financial disclosure so that every Syrian citizen knows what goes into the budget, where these resources are directed, and how their implementation evolves during the year.” The minister’s post also noted the possibility of using a specific link to access the report referenced above.

According to data from the Syrian Ministry of Finance, the general budget has entered a new phase of financial pressure in the first half of 2026, shifting from a surplus to a deficit exceeding one billion dollars, despite a significant rise in total revenue, driven by a sharp increase in spending funded by higher salaries and wages, administrative and investment expenses, as well as higher import costs and disruptions to supply chains caused by geopolitical and regional tensions. The Syrian budget recorded a financial deficit of about 1.005 billion dollars in the first six months of the year, equal to 56 percent of the total projected deficit for 2026, which stands at around 1.8 billion dollars, compared to a surplus of 422 million dollars in the same period last year. The Ministry of Finance said the deficit was financed through short-term investment funding payable within the year, which, according to its estimates, limited its expected impact on the economy. In the interest of transparency and financial disclosure, the Ministry issued the Citizen Performance Report for the first half of 2026, reviewing the main results of implementing the state budget in the first half of the year, including revenues, expenditures, and the level of the deficit. pic.twitter.com/tqOGMl6g32 — Syrian Ministry of Finance (@SyrMOfF) August 31, 2026 Revenues Jump... But Spending Outpaces It General revenues in the budget rose 111 percent year-on-year in the first half to about 2.695 billion dollars, up from 1.280 billion dollars in the same period of 2025. Revenues realized in the first six months accounted for about 31 percent of the total estimated annual budget revenues, which amount to 8.716 billion dollars. Customs duties topped revenue sources, totaling about 1.079 billion dollars, or about 40 percent of total collected revenue, followed by state investment returns at about 763 million dollars, or 28 percent, then oil and gas revenues at about 601 million dollars, or 22 percent, and tax and fee revenues at about 252 million dollars, or 9 percent. The flow of oil and gas revenues is of particular importance in Syrian financial accounts, as the Ministry of Finance explained that the supply of these revenues to the general treasury began in May 2026 and, for the first time, in full. The first-half figures did not include the proceeds from the sale of the second mobile phone license, which are expected to be deposited with the ministry in the second half of the year. The government intends to direct these proceeds to support capital spending in affected areas, as well as to promote entrepreneurship and startups in the tech sector. The Ministry of Finance expects revenues to rise in the second half of the year, driven by continued oil and gas revenue inflows, improved tax and customs collection, together with the mobile license proceeds and fuel transit fees. Expenditures Jump to More Than Triple In contrast, total spending rose much faster, surging 331 percent year-on-year in the first half to about 3.7 billion dollars, compared with 858 million dollars in the same period last year. Actual expenditures accounted for about 35 percent of the total approved spending in the budget, which stands at 10.5 billion dollars. Salaries, wages, allowances, and benefits accounted for the largest share of spending, totaling 1.339 billion dollars, or 36 percent of total spending, affected by increases implemented starting in May. Administrative expenses reached about 1.025 billion dollars, or 28 percent of total spending, while investment expenses reached 1.021 billion dollars, or 28 percent, with 35 percent of annual allocations executed. Support and social security spending amounted to about 315 million dollars, or 9 percent. The Ministry of Finance attributed the sharp rise in spending directly to geopolitical and regional tensions that affected supply chains and raised import costs, especially for fuel, construction materials, and foodstuffs, which in turn increased the cost of goods and services and inputs used by government entities. Syrian Finance Minister Muhammad Yasser Brnaya expects a acceleration in spending in the coming months as wage increases are fully implemented and funding for investment and development projects is intensified, confirming the authorities’ commitment to transparency standards and regularly informing citizens of revenue details and expenditure directions. The economy: recovery amid fiscal pressures These financial developments come as Syria seeks to rebuild its economy and restore productive and investment activity after years of turmoil. This places financial policy before a difficult equation: financing reconstruction needs, public services, and social protection while containing the deficit and expanding the revenue base. IMF estimates play a role in assessing the broader economic path, as the Fund expects the Syrian economy to return to growth in 2026, with growth of about 10 percent after years of contraction and turmoil, supported by revived trade and investment and a return of productive sectors to work. It is also expected that the second half of the year will see increased spending on health, education, housing, and social protection, according to the Ministry of Finance, meaning budget pressures will persist even with projected revenue growth.

The Syrian Ministry of Finance released today the financial performance report of the state general budget for the first half of 2026, which showed total general revenues reaching about 2.7 billion dollars, against total expenditures of about 3.7 billion dollars, recording a financial deficit of about 1 billion dollars. In this context, Syrian Finance Minister Mohammad Yaseer Berniya said that the revenues achieved during the first half represent about 31 percent of the estimated annual revenues, while expenditures execution reached about 35 percent of the total approved expenditures. He noted that public revenues rose by about 111 percent compared to the first half of 2025, while total spending increased by about 331 percent, attributing this mainly to higher salaries and wages, expanded spending on government priorities, as well as the rising cost of a number of goods and services and inputs due to regional developments and higher import prices. Berniya drew attention to the start of the transfer of oil and gas revenues to the Ministry of Finance since last May, expecting that the increase in oil revenues during the second half of the year, alongside improved tax and customs collection and some exceptional revenues, will strengthen the resources of the general treasury.\n\nRising pace of spending\nIt is expected that the pace of spending will rise in the second half of the year, as the full effect of the salary increases becomes evident, and as project implementation and investment spending accelerate, especially to support affected areas, with the ministry continuing to set spending priorities and manage liquidity and financing within available resources and maintain financial discipline. Berniya explained that the report represents the third edition in the series of financial disclosures started by the ministry with the Financial Performance Report for 2025, then the Citizen’s Budget for 2026, aiming to transition from publishing the approved budget to publishing the results of its actual execution regularly. In a related context, the Syrian Ministry of Finance began preparing the state general budget draft for 2027 in a session chaired by Berniya on June 27, dedicated to discussing the timeline for completing the project, drawing on the experience of preparing the 2026 budget, to help complete the budget before the end of the third quarter, while enhancing the introduction of updates related to preparation, execution, and digitization processes.\n\nThe Syrian Ministry of Finance issued today the financial performance report of the state general budget for the first half of 2026, which showed total general revenues reaching about 2.7 billion dollars, against total expenditures of about 3.7 billion dollars, recording a financial deficit of about 1 billion dollars. In this context, Syrian Finance Minister Mohammad Yaseer Berniya said that the revenues achieved during the first half represent about 31 percent of the estimated annual revenues, while expenditures execution reached about 35 percent of the total approved expenditures. He noted that public revenues rose by about 111 percent compared to the first half of 2025, while total spending increased by about 331 percent, attributing this mainly to higher salaries and wages, expanded spending on government priorities, as well as the rising cost of a number of goods and services and inputs due to regional developments and higher import prices. Berniya drew attention to the start of the transfer of oil and gas revenues to the Ministry of Finance since last May, expecting that the increase in oil revenues during the second half of the year, along with improved tax and customs collection and some exceptional revenues, will strengthen the resources of the general treasury.\n\nRising pace of spending\nIt is expected that the pace of spending will rise in the second half of the year with the full effect of salary increases becoming evident, and with faster project implementation and investment spending, especially to support affected areas, while the ministry continues to organize spending priorities and manage liquidity and financing within available resources and maintain financial discipline. Berniya explained that the report represents the third edition in the series of financial disclosure started by the ministry with the Financial Performance Report for 2025, then the Citizen’s Budget for 2026, aiming to move from publishing the approved budget to publishing its actual execution results regularly. In this context, the Syrian Ministry of Finance began preparing the state budget draft for 2027 in a session chaired by Berniya on June 27, dedicated to discussing the timeline to complete the project, leveraging the experience of preparing the 2026 budget to help complete the budget before the end of the third quarter, while reinforcing the incorporation of updates related to preparation, execution, and digitization processes.\n\nSubscribe with us to the City Newsletters to stay continuously connected to the events.

Summary The budget deficit in the Syrian budget for the first half of 2026 amounted to about 1 billion USD, with total public revenues around 2.7 billion USD, versus total public spending of about 3.7 billion USD. The Syrian Ministry of Finance published the third report in its series of financial disclosures on the performance of the state general budget for the first half of 2026. According to the published data, total public revenues in the first half reached about 2.7 billion USD, while total public spending was about 3.7 billion USD, resulting in a financial deficit of about 1 billion USD, representing roughly 31% of the annual estimated revenues and about 35% of the approved total expenditures. Revenue rose by 111% In a statement, Syrian Finance Minister Muhammad Yasser Berniya said, “Compared to the first half of 2025, total public revenues rose by about 111%, while total public spending rose by about 331%, reflecting a primary rise in salaries and wages and expanded spending on government priorities.” He noted that the delivery of oil and gas revenues to the Ministry of Finance began in May of last year. Recently, the Syrian Ministry of Energy announced that Syria’s total crude oil production reached about 14.8 million barrels in the first half of 2026. The Finance Minister predicted that an increase in revenues in the second half of the year, improved tax and customs collection, and some exceptional revenues would bolster the resources of the general treasury. The minister, in his remarks, expected a higher pace of spending in the second half of the current year, with the full effect of salary increases and accelerated project execution and investment spending, stressing the commitment to enhance financial disclosure so every citizen knows what goes into the budget and where it is directed during the year. Rising spending and deficit The figures announced by the Syrian Ministry of Finance show a large budget deficit: total revenues of 2.7 billion USD equal 31% of the annual revenues estimated, while total expenditures amounted to 3.7 billion USD, which corresponds to 35% of the approved annual expenditures. Economist and university professor Ihab Asmander believed that if the budget deficit in the first half is 1 billion USD, it constitutes 27% of expenditures and 37% of revenues, meaning that for every 100 USD of revenue, 137 USD are spent. Compared with the first half of 2025, revenues rose by 111%, while expenditures rose by 331%. This large growth gap—spending growing much faster than revenues—explains the rapid widening of the deficit. The specialist told Independent Arabia that the report also expects improvements in revenues in the second half thanks to oil and gas revenues which began in May, improved tax and customs collection, and some exceptional revenues, but the report also anticipates increased spending due to the continuing impact of salary increases and accelerated projects, which could keep the deficit high, potentially reaching an annual deficit of 1.86 billion USD, i.e., 17.6% of expenditures. No escape from external borrowing Asmander notes strong indicators of a need for external financing, though not necessarily hard commercial borrowing; it could be grants or concessional loans. He adds, “We explain the need for external financing by several factors: first, the half-year deficit of 1 billion USD; if it continues at the same pace without coverage, the annual deficit would be around 2 billion USD.” Even with optimism about revenue improvements in the second half, the most likely scenario, based on available numbers, confirms that if revenues reach the full annual estimate of 8.71 billion USD and expenditures reach the full approved 10.57 billion USD, the annual deficit would be 1.86 billion USD, i.e., 17.6% of expenditures. Asmander stressed that such a deficit cannot be fully financed from internal sources in the current Syrian economy for several reasons, including the limited local bond market, weak monetary reserves, and resorting to printing money would lead to runaway inflation, which Syria already suffers from. He clarified that the report itself notes the phrase “manage liquidity and finance within available resources,” a formulation that could implicitly signal seeking external financing sources—from loans, grants, and deposits—without disclosure. Raising revenues to 5 billion USD The Syrian academic emphasized that to drastically reduce the current deficit of 1 billion USD in six months, revenues in the second half should rise to at least 5 billion USD, instead of 2.7 billion, while keeping expenditures at 4 billion USD. This would require a leap in oil revenues and taxation, and to achieve this three main packages of solutions are needed: increase revenues, curb spending, and improve financing management. Regarding increasing revenues, the fastest-acting aspect, the Syrian economist notes it could come first from oil and gas revenues, since deliveries began in May. If average monthly oil revenues reach 200 million USD, that would add about 1.2 to 1.4 billion USD in the second half, significantly lowering the annual deficit. As for taxes and customs, their impact would be seen through improved collection; if collection efficiency rises from 60% to 80%, tax and customs revenues could increase by 20–30% without changing laws. Regarding combatting tax evasion and customs smuggling, international estimates indicate that the informal Syrian economy is large and could yield additional revenues of hundreds of millions of dollars by capturing 10% of its value. Moreover, there are exceptional revenues, which could include asset sales, service fees, or direct foreign aid to the budget. Asmander stressed the need to control and rationalize spending by, first, restructuring subsidies and directing them from goods, energy, and flour to direct cash support for the poorest households, which would save the treasury between 15% and 25% of the annual subsidy bill. Second, controlling the payroll bill that has risen greatly, as spending rose by 331%. Here, new hiring should be fixed and administrative allocations reviewed, noting that achieving a mere 5% reduction in operating expenditures (excluding base salaries) could save about 150–200 million USD annually, according to the speaker. The third factor to control spending, according to Asmander, is delaying nonessential projects and focusing on urgent infrastructure projects and postponing luxuries until resources improve. Added to all of this is improving the efficiency of government procurement, as fighting corruption and waste in contracts could save 10% of project costs. Cash grants to support the budget The Syrian economist stressed the importance of managing the deficit in non-inflationary ways through long-term concessional borrowing from international institutions such as the World Bank and the IMF at low interest and grace periods, and seeking grants and monetary assistance to support the budget, which is better than loans as they don’t burden the debt. Finally, he called for issuing long-term local bonds at positive real interest rates to absorb liquidity rather than printing money, noting that doing so requires confidence in the banking sector. He affirmed that if all of this is achieved, a reduction in the annual deficit to less than 1 billion USD could be possible, a level that could be financed with limited external funding or reserves.

Damascus, Aug. 31 (SANA) Higher salaries and wages, expanded spending on government priorities and rising import costs pushed Syria’s public expenditure sharply higher in the first half of 2026, resulting in a fiscal deficit of about $1 billion despite strong growth in state revenue. Public expenditure reached about $3.7 billion during the six-month period, up 331% from a year earlier, while revenue rose 111% to about $2.7 billion, Finance Minister Mohammed Yisr Barnieh said, citing the Finance Ministry’s latest report on state budget performance. Barnieh attributed the much faster rise in expenditure mainly to salary and wage increases, expanded spending on government priorities and higher costs for some goods, services and inputs due to regional developments and rising import prices. The deficit therefore did not result from falling state revenue. Revenue more than doubled from a year earlier, but expenditure increased more than fourfold as the government implemented higher wages and expanded spending under a substantially larger 2026 budget. A timing factor also affected the revenue side. Barnieh said oil and gas proceeds began being transferred to the Finance Ministry only in May, meaning a major source of projected state revenue was reflected for only part of the first-half reporting period. Revenue reached about 31% of the annual estimate in the first six months, while expenditure accounted for around 35% of approved spending. The sharp rise in expenditure comes as Syria implements a 2026 budget that envisages significantly higher government spending than last year. The Citizens Budget issued by the Finance Ministry in April projected expenditure of about 1.1567 trillion new Syrian pounds, equivalent to $10.516 billion, compared with actual spending of around $3.45 billion in 2025. Of planned 2026 expenditure, 60% is allocated to current spending, 27% to investment and 13% to subsidies and social security. When launching the budget, Barnieh said wage and salary reform would continue, while improving basic services, particularly health and education, remained a government priority. He also said low-income and poor households were at the center of budget policies. The first-half spending increase also reflected higher government costs. Barnieh said regional developments and rising import prices had increased the cost of some goods, services and inputs. Spending is expected to remain under upward pressure in the second half as the full impact of higher salaries and wages appears in government accounts and implementation of projects and investment expenditure gathers pace, particularly in support of affected areas. The first-half deficit marks a sharp shift from Syria’s fiscal performance in 2025, when the country recorded its first annual budget surplus since 1990. Public revenue reached about 384.2 billion new Syrian pounds, equivalent to around $3.49 billion, while expenditure stood at about 379.2 billion pounds, or around $3.45 billion, leaving a surplus of nearly 5 billion pounds, or about $46 million. The surplus was equivalent to around 0.15% of gross domestic product, compared with a deficit equivalent to 2.7% of GDP in 2024. Revenue rose 120.2% in 2025 from the previous year, while expenditure increased 45.7%. Customs duties accounted for about 39% of revenue, while wages and salaries represented 41% of expenditure. The surplus had reached nearly $500 million by the end of the third quarter before narrowing in the final three months of 2025 as spending increased and outstanding obligations were settled. The fiscal framework is considerably larger in 2026. The Citizens Budget projected annual revenue of about 958.8 billion new Syrian pounds, equivalent to $8.716 billion, against planned expenditure of $10.516 billion. The Finance Ministry expects the revenue side of the budget to strengthen during the remainder of the year as oil and gas receipts make a fuller contribution and tax and customs collection improves. Under the 2026 budget, taxes, fees and customs are projected to account for 50% of annual revenue, oil and gas for 28%, and other sources for the remaining 22%. Barnieh said higher oil revenue, improved tax and customs collection and some exceptional revenue were expected to strengthen Treasury resources in the second half. The government is also overhauling the tax system to improve compliance while stimulating economic activity and reducing the burden on lower-income groups. The proposed framework includes lower rates and simplified procedures for individuals and businesses, exemptions for low-income earners and essential goods, and incentives aimed at supporting private-sector investment and the recovery of affected businesses. Barnieh has said stronger economic growth, efforts to combat corruption and tax evasion and increased compliance are expected to improve tax revenue over time. An International Monetary Fund tax-policy mission reviewed draft legislation with the Finance Ministry and Tax Reform Committee in August, while the government is also modernizing tax and customs administration through electronic invoicing, e-payment systems and a national customs platform. Stronger economic activity could provide additional support for revenue. Barnieh said in August that Syria’s economy was expected to grow 11.3% in 2026 and that budget revenue was expected to reach nearly $8 billion during the year, compared with the formal Citizens Budget estimate of $8.716 billion published in April. An IMF consultation mission in July also said restored oil and gas production areas, alongside stronger performance in agriculture and tourism, were expected to support economic growth, production and public revenue. The second half is expected to bring stronger revenue but also further increases in expenditure. On the revenue side, the ministry expects a fuller contribution from oil and gas, improved tax and customs collection and exceptional revenue. On the expenditure side, higher wages will have a greater impact on government accounts, while project implementation and investment spending are expected to accelerate. That leaves expenditure management and the pace of revenue growth central to fiscal performance during the remainder of 2026. Barnieh said the ministry would continue prioritizing spending and managing liquidity and financing within available resources while maintaining fiscal discipline. Syria’s public finance reforms are also receiving international support. Barnieh said five World Bank grants approved for the country had reached a combined $491 million by August, covering electricity, health, water, public financial management and financial-sector reform. He stressed that the funding consists of non-repayable grants rather than loans. A separate World Bank review found satisfactory implementation of measures covering public debt sustainability, debt management and transparency, qualifying Syria for increased International Development Association grant allocations for fiscal 2027. The first-half results put fiscal discipline at the center of government policy as the Finance Ministry prepares the 2027 state budget. The latest financial performance report is the third publication in a series of fiscal disclosures by the ministry, following its report on 2025 financial performance and the 2026 Citizens Budget. Barnieh said the ministry was moving from publishing approved budget figures alone toward periodically disclosing actual implementation results, allowing Syrians to see what resources enter the budget, where they are directed and how implementation develops during the year. Work on the 2027 state budget began on June 27, with the draft targeted for completion before the end of the third quarter. The process draws on experience from the 2026 budget while incorporating further updates to budget preparation, implementation and digitalization. Preliminary planning for 2027 points to higher revenue driven by economic growth and stronger compliance, even without factoring in telecommunications licensing revenue or temporary increases in oil revenue, Barnieh has said. With both revenue and expenditure expected to rise during the remainder of 2026, the Finance Ministry says it will continue prioritizing spending, managing liquidity and financing within available resources and maintaining fiscal discipline. Muhammad Fares

The Syrian Ministry of Finance issued today, Monday, a financial performance report of the state's general budget for the first half of 2026, showing a surge in revenues and expenditures. The Syrian Finance Minister, Mohammed Yassir Bernia, said that total public revenues during the first half of the current year reached about $2.7 billion, while public expenditures reached about $3.7 billion. The minister explained that the financial deficit registered about $1 billion, noting that this figure reflects the execution of 31% of the estimated annual revenues versus 35% of the total approved expenditures, according to the Syrian News Agency. Compared with the first half of 2025, the data show a 111% rise in public revenues and a 331% rise in public spending. Bernia pointed out that the increase in spending basically reflects higher salaries and wages, expanded spending on government priorities, as well as higher costs of goods, services, and inputs due to regional developments and rising import prices. Separately, the minister noted the start of delivering oil and gas revenues to the Ministry of Finance since May, and expected to strengthen the treasury’s resources in the second half of the year due to higher oil revenues, improved tax and customs collection, as well as some extraordinary revenues. In related context, Bernia anticipated a higher pace of spending in the second half as the full effect of salary and wage increases appears, along with an acceleration in project implementation and investment spending, particularly to support affected areas. He affirmed that the ministry will continue to prioritize spending, manage liquidity and financing within available resources, and maintain fiscal discipline. Source: RT

Syrian general budget revenues doubled in the first half of 2026, supported by improved customs collection and the start of oil and gas revenues flowing into the treasury, but accelerated spending pushed the public finances into a deficit of about one billion dollars. A financial performance report issued by the Syrian Ministry of Finance showed total public revenues of $2.7 billion in the first six months, up 111% from the same period in 2025, while expenditure jumped 331% to $3.7 billion. The realized revenues accounted for 31% of the annual budget estimates, compared with 35% of approved expenditures. Customs duties topped the sources of revenue at $1.08 billion, or 40% of the total, followed by state investment returns at $763 million, and oil and gas revenues at $601 million, while taxes and fees amounted to $252 million. The Ministry of Finance expects the momentum to continue in the second half with further oil revenue inflows and additional resources. In a separate note, the International Monetary Fund (IMF) predicted in a report issued in August that Syrian revenues would rise in 2026, supported by higher tax and customs collection and oil and gas revenues, along with extraordinary resources such as telecommunications licensing fees and fuel transits. The IMF emphasized the importance of continuing sound fiscal policies and strengthening revenue mobilization, especially amid rising inflation and higher import prices. Rising expenditures and budget deficit The annual public expenditure rose by 331% to $3.7 billion, driven by higher salaries and current expenditures, in addition to pressures from regional tensions and rising import prices. Salaries, wages, and compensation absorbed $1.34 billion of the spending, followed by administrative expenses at $1.03 billion, then investment expenditures at $1.02 billion, while spending on social support and social security reached $315 million. The budget recorded a fiscal deficit of $1.005 billion in the first half, equivalent to 56% of the deficit projected for the full year. The Ministry of Finance stated that it financed the deficit through short-term investment funding repayable within the year. Growth projections and economic changes The Syrian government expects the economy to grow by more than 11% in 2026, driven by improved agricultural production and oil and gas output, availability of electricity, growth in trade and services, and the return of displaced persons. These projections align with IMF estimates of growth exceeding 10% despite ongoing inflationary pressures. In the context of economic changes, the United States formally removed Syria from the list of state sponsors of terrorism and delisted Hay’at Tahrir al-Sham from the U.S. sanctions list, a move deemed by Syrian authorities as historic and contributing to easier integration of the country into the global financial system and to support attracting investments and technology.