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

Syria's budget revenue more than doubled in the first half of 2026, reaching $2.7 billion, according to a financial performance report from the Ministry of Finance. The surge was primarily driven by a rise in customs collection and the commencement of oil and gas revenue. However, the increased spending contributed to a $1 billion deficit during the same period.

Customs duties were the leading source of revenue, accounting for $1.08 billion, or 40% of the total. State investment returns contributed $763 million, while oil and gas revenue accounted for $601 million. Taxes and fees generated $252 million.

The Ministry of Finance anticipates continued growth in revenue during the second half of 2026, as additional oil revenue and further resources are expected. The International Monetary Fund (IMF) also projected a revenue increase for 2026, driven by higher tax and customs collection, along with oil and gas income.

The Ministry of Finance warned that the deficit of $1.005 billion was financed through short-term investment funding, expected to be repaid within a year. Salaries, wages, and compensation comprised $1.34 billion of the spending, while administrative expenses totaled $1.03 billion, investment spending was at $1.02 billion, and subsidies and social security amounted to $315 million.

The Syrian government projected annual economic growth of over 11% in 2026, supported by enhanced agricultural output, oil and gas production, electricity availability, trade, services, and the return of displaced individuals. These projections align with IMF estimates of growth exceeding 10%, despite ongoing inflationary pressures.