The Ministry of Finance has started working on preparing the draft state budget for 2027, in a step described as a government direction towards early planning and the development of financial management tools, during an expanded session chaired by Minister Mohamed Youser Barnieh in the presence of the committee concerned with setting the general framework of the new budget.

A statement published by the ministry on its official IDs said that the session discussed the time plan for the completion of the project, taking advantage of the experience of the 2026 budget to ensure the completion of the financial document before the end of the third quarter, allowing for the introduction of more technical and digital updates in the preparation and implementation stages, and giving public entities more time to arrange their priorities and programs.

Minister Barnieh called for the preparation of the budget based on the comprehensiveness of the vision and the accuracy of planning, as it is "the tool that reflects financial activities in various sectors", stressing the need to consolidate the principle of budget comprehensiveness and link it to national economic and social priorities in order to enhance financial sustainability and achieve more efficient management of public resources.

The Minister of Finance calls for clear performance indicators

He pointed out that digital transformation has become a key axis in the development of financial business through the adoption of unified electronic platforms and clear performance indicators that contribute to raising the efficiency of implementation, enhancing follow-up, and providing real-time data that helps in decision-making.

The Minister directed to intensify consultative meetings with ministries, authorities and public institutions to ensure that the budget is in line with the plans of each entity, and to accurately identify the actual needs, stressing that the preparation of the budget requires integrated work and high coordination between all concerned parties, and the development of a detailed timetable for the stages of preparation from data collection to final drafting.

According to the data of the Ministry of Finance, the total appropriations for the 2026 budget amounted to about $10.516 billion, equivalent to 1156.7 billion new pounds, against revenues estimated at about $8.716 billion (958.8 billion new pounds), which results in a fiscal deficit of $1.799 billion, representing 5.3% of the GDP of $33.7 billion, according to an approved exchange rate of 110 new pounds to the dollar.

Figures from the 2026 Budget

The financial statements revealed that current expenditures account for the largest share of expenditure at 60%, while 27% goes to investment projects and 13% to social support, with 40% of the total budget allocated to the public services sector, especially health, education and hospitals.

The ministry said that half of the revenues come from taxes, fees and customs at 50%, while the oil and mineral resources sector contributes 28% of the total revenues after the regain of control of the eastern fields, and investment and miscellaneous revenues supplement the remaining 22%.

The Ministry of Finance confirms that the deficit will be covered through government bonds, sukuk and sovereign fund returns, in order to avoid resorting to inflationary financing. The budget also includes a plan to raise salaries and wages by 50%, with a full exemption from income tax for those whose annual income is less than 50 million old pounds in support of purchasing power and to reduce poverty rates.