Lebanon’s draft 2026 budget will not impose new taxes but instead push reforms to improve revenue collection, especially in customs, Finance Minister Yassine Jaber said, while warning that the State cannot bear the cost of full-scale reconstruction after the latest war.

In an interview with Addiyar newspaper, Jaber said $250 million has been secured for repairing infrastructure and buildings damaged by the conflict, but stressed that the cornerstone of reform is restoring the banking sector’s ability to function.

“We don’t want to borrow anymore. Our revenues will dictate our spending; cut your coat according to your cloth,” Jaber said. “There are no new taxes in this budget because we cannot burden the Lebanese people further. Instead, we are working to strengthen tax collection across all sectors, particularly customs.”

He said revenues had already improved and that the government was aiming for a small surplus, in line with International Monetary Fund (IMF) demands. 

Jaber rejected criticism that the draft budget was “merely an accounting exercise,” saying it contained reformist measures, including funding for salaries, social programs, and for the first time, $50 million for the government’s “Aman” safety-net program to support vulnerable families.

The draft also includes large allocations for health, education, and the Lebanese University. About 11% of the budget is earmarked for investment, while four World Bank loan agreements were passed “in record time” to boost capital spending.

He said a priority is restructuring the power sector by appointing a new regulatory authority and channeling $250 million in World Bank loans to strengthen transmission networks and substations. Private firms will manage distribution and billing, while production will be shared between state-run Électricité du Liban and international partners such as Siemens.

An additional $257 million will go toward water projects, including fresh water supply for Beirut, while $200 million is allocated for agriculture, with $50 million in loans to farmers and agribusinesses.

Jaber said $250 million has been set aside for rebuilding infrastructure, along with separate funding for repairing cracked buildings in Beirut’s southern suburbs. The South Council has already received $18 million, of which $12 million will be used to repair 500 damaged buildings. France has pledged €75 million to support reconstruction.

But he cautioned that the $4 billion needed to rebuild destroyed structures in southern Lebanon was far beyond the state’s capacity.

“Our priority now is infrastructure and repairing damaged buildings. We cannot rebuild entirely demolished structures through our budget,” he said.

The government is also paying rent subsidies to 10,000 displaced families and monthly aid to 67,000 families, Jaber added.

Revenue reforms will focus on modernizing customs, he said. Three new scanners will inspect every container arriving directly from ships, eliminating opportunities for fraud. A private company will operate the system 24 hours a day.

The ministry has also launched an advanced IT system, funded by the EU and World Bank, that uses artificial intelligence to analyze cargo data before shipments leave their country of origin.

“This will change the entire approach to imports and revenue collection,” Jaber said.

In parallel, more than one million taxpayers filed electronically over the past eight months, and within weeks, all payments will be processed via credit card in coordination with the central bank and commercial lenders.

On Lebanon’s financial collapse, Jaber compared it to crises in Greece and Cyprus but said the country’s default on Eurobonds deepened the damage.

“We are in contact with bondholders and they understand. For the first time, Standard & Poor’s upgraded Lebanon’s rating from C** to C***. That’s a positive sign,” he said.

He stressed that depositors’ funds were a priority.

“Depositors’ money is the starting point of recovery. Their rights are fundamental,” he said, adding that the government had lifted banking secrecy, passed a bank restructuring law, and was drafting legislation to address the financial gap. Exceptions would apply only to illicit funds linked to corruption or money laundering.

Jaber said visiting IMF delegations regularly consult with lawmakers, bankers, and business leaders to assess reforms.

“We keep them informed of every step we take and the gradual improvements being made,” he said.

Asked what mark he hopes to leave, Jaber replied: “Reforms. The Finance Ministry is changing, and I want to leave it in far better shape than when I entered.”