Public Finances: War's Impact on Surpluses

The Lebanese Ministry of Finance has released a detailed breakdown of the 2025 budget figures, highlighting a significant increase in revenues compared to 2024. Total revenues reached 554.35 trillion Lebanese liras (approximately $6.19 billion), marking a 59% rise. Tax revenues also grew by 64%, while expenditures increased by a smaller margin of around 30%. The figures resulted in a primary surplus of $1.76 billion and a total surplus of $1.45 billion after accounting for interest payments, surpassing previous expectations. This comes amid austerity policies aimed at controlling liquidity and foreign reserves, despite the ongoing impact of the war on the financial situation and the anticipated economic contraction in 2026.

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