Lebanon’s government will not introduce new taxes under its proposed 2027 budget, Prime Minister Nawaf Salam said, as authorities seek to improve public revenues while limiting the burden on citizens and maintaining fiscal discipline.

Speaking at a press conference on Lebanon's economic situation, Salam said government revenue collection had improved and stressed that the 2027 budget proposal would contain no new taxes.

Some existing fees have been adjusted to reflect current exchange rates, he said, while new fees will be imposed on yachts and private aircraft.

The planned budget is expected to reach around $7 billion, with a large portion of the increase allocated to salary adjustments for public-sector employees, military personnel and teachers. The additional cost is estimated at around $1.2 billion.

Salam said the government had approved six additional salaries, increased family allowances and adjusted transportation allowances and the minimum wage, while stressing that spending increases must be matched by adequate funding to preserve fiscal balance.

The government has also increased its contribution to the Aman social assistance program to $70 million. Combined with expected World Bank funding, the move could increase the number of beneficiary families from around 100,000 to 150,000, Salam said.

Economy under pressure

Salam said Lebanon’s economy grew by 4.2% last year, describing that performance as the beginning of a recovery path. The war, however, halted that recovery and pushed the economy back into contraction, with growth expected to fall by about 6.4% this year, he said.

He said the regional crisis and higher oil prices, particularly for diesel and gasoline, had increased the cost of living in Lebanon, which relies heavily on imports.

Salam said the government understood the pressure on households, including rising bills for private electricity generators, with some families forced to choose between paying for fuel and meeting other household needs.

“The government’s responsibility is to ease the burden on citizens and protect them from exploitation,” he said, stressing that any reduction in import and transportation costs should be reflected in the prices of goods and services.

The government has ordered tighter oversight of private generators, including enforcement of meter requirements and official tariffs, Salam said. Violators will be issued citations and referred to the judiciary.

Higher health spending

Salam also announced a roughly 16% increase in funding for the Health Ministry compared with this year, aimed at strengthening coverage for hospital treatment, medicines and health care.

“Social and health services are a right for every citizen, regardless of sectarian or regional considerations,” he said.

He also said residents had begun to see the results of the Public Works and Transport Ministry’s work in several areas, including road paving and rehabilitation and bridge repairs.