Syrian Finance Minister Mohammed Yisr Barnieh announced the establishment of the Macroeconomic and Public Finance Policy Unit, in cooperation with the International Monetary Fund, to develop public financial management.
The minister said on his Facebook page on Monday evening, July 6, that the unit’s first task is to develop a medium-term fiscal framework to guide the preparation of the 2027 budget and the budgets that follow, in support of economic and financial stability and sustainable development in Syria.
The creation of the unit is in line with the ministry’s 2026-2030 strategy, according to Barnieh, who said it aims to improve forecasting capacities, support the preparation of public budgets, and build the capacities needed for effective economic and financial management.
He noted that support from the International Monetary Fund is a key pillar for the success of the Macroeconomic and Public Finance Policy Unit.
The committee preparing the 2027 draft budget held a meeting on June 27, chaired by the finance minister, to discuss the timeline for completing the draft budget and the required modernization and development mechanisms.
The meeting discussed the possibility of benefiting from the experience of the 2026 budget, in a way that would allow the budget to be completed before the end of the third quarter of the year. It also discussed introducing further modernization, development, and digitization in the preparation and implementation phases. The meeting reviewed the importance of sound preparation and planning, and of establishing the principle of budget comprehensiveness as a tool that reflects various financial activities across all public sectors and institutions.
2025 Budget
The Syrian Ministry of Finance published a brief report on April 7 on the financial performance of the state’s general budget for 2025.
Barnieh said the general budget posted a slight surplus of about 5 billion new Syrian pounds, equivalent to about $46 million, the first surplus since 1990. He had previously said that the 2025 general budget recorded a financial surplus exceeding half a billion dollars during the first ten months of the year.
Estimates of Higher 2026 Revenues
The finance minister estimated that public spending in the 2026 budget would rise by about $10.516 billion, more than three times public spending in 2025, with attention to social and investment spending.
He noted that spending is likely to rise further in the 2027 budget, specifically to finance development projects, reconstruction, and poverty reduction programs.
By contrast, total public revenues for 2026 are estimated at $8.716 billion, 28% of which will come from oil and gas revenues that will enter the state’s general budget in full.
Barnieh affirmed the ministry’s commitment to strengthening financial disclosure so that every Syrian citizen knows what enters the budget and where those resources are spent.
Banking expert Dr. Ibrahim Nafea Qushji told Enab Baladi in a previous interview that the expected deficit for 2026, estimated at $1.8 billion, or 17.1% of total spending and about 5.9% of expected gross domestic product, assuming GDP growth, is large compared with the 2025 surplus. He said it requires financing through domestic or external borrowing, or treasury bonds.
Estimates indicate that oil and gas revenues will represent 28% of revenues, about $2.44 billion, with confirmation that they will enter the general budget in full. According to Qushji, this carries three implications:
- Reducing reliance on customs duties, from 39% in 2025 to a lower percentage in 2026.
- The risks of fluctuations in global energy prices will directly affect the budget.
- The assumption that oil and gas production will return to higher levels depends on improved security and investment.
Spending Trends for 2026 and 2027
The same report points to “attention to social and investment spending” in 2026, followed by greater acceleration in 2027 to finance reconstruction projects and combat poverty.
Qushji affirmed that this is an important strategic shift from current spending, including wages, to capital spending, but it poses challenges:
- Absorptive capacity: Does the economy have the ability to implement projects worth more than $10 billion annually?
- Sustainable financing: The expected 2026 deficit of $1.8 billion could grow in 2027 as spending on reconstruction rises.
- Transparency in implementation: Commitment to periodic financial disclosure will be decisive to ensuring the efficiency of investment spending.
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