Syrian budget revenue doubles in H1 2026, but deficit hits $1bn as spending surges

Syria’s general budget revenue doubled in the first half of 2026, supported by improved customs collection and the start of oil and gas revenue flows to the treasury. However, accelerated spending pushed public finances into a deficit of about $1 billion.

A financial performance report from the Syrian Ministry of Finance showed total revenue reached $2.7 billion in the first six months, up 111% from the same period in 2025, while spending jumped 331% to $3.7 billion.

Revenue achieved 31% of the annual budget target, compared to 35% of approved expenditures already spent.

Customs duties led revenue sources at $1.08 billion, accounting for 40% of the total, followed by state investment returns at $763 million, oil and gas revenue at $601 million, and taxes and fees at $252 million.

The Ministry of Finance expects momentum to continue in the second half as more oil revenue and additional resources are collected.

The International Monetary Fund, in a report released in August, projected Syrian revenue to rise in 2026, supported by higher tax and customs collection and oil and gas income, along with exceptional resources such as telecom license fees and fuel transit charges.

The IMF stressed the importance of maintaining sound fiscal policies and boosting revenue mobilization, especially amid rising inflation and import costs.

Rising expenditure and budget deficit

Annual public spending surged 331% to $3.7 billion, driven by higher salaries and current expenses, as well as pressures from regional tensions and rising import prices.

Salaries, wages, and compensation accounted for $1.34 billion of spending, followed by administrative expenses at $1.03 billion, investment spending at $1.02 billion, and subsidies and social security at $315 million.

The budget recorded a financial deficit of $1.005 billion in the first half, equivalent to 56% of the full-year projected deficit.

The Ministry of Finance explained that the deficit was financed through short-term investment funding to be repaid within a year.

Growth outlook and economic changes

The Syrian government expects the economy to grow by more than 11% in 2026, driven by improved agricultural output, oil and gas production, electricity availability, growth in trade and services, and the return of displaced people.

These projections align with IMF estimates for growth exceeding 10%, despite ongoing inflationary pressures.

In a significant economic shift, the United States officially removed Syria from its list of state sponsors of terrorism and delisted Hayat Tahrir al-Sham from US sanctions. Syrian authorities described this as a historic step that will help the country rejoin the global financial system and attract investment and technology.