The deficit forecast for 2026 has fallen from €13.7 million to €5.6 million. That is the headline figure in the budget adjustment under review by the Grand and General Council (Consiglio Grande e Generale), which updates the state’s revenue and expenditure projections based on trends recorded during the year.
The improvement is largely driven by eight million euros in higher-than-expected revenue from the General Income Tax (IGR), which the Secretariat of State for Finance and Budget attributes to the effects of the tax reform. The Secretariat notes that the estimate remains cautious, given that two months remain before the close of the fiscal year.
“The eight million euros in additional expected IGR revenue represent a significant confirmation of the effects of the tax reform. We see this as a positive sign, without losing sight of the need for a rigorous assessment of the accounts: forecasts must be grounded in the available data and leave room for caution, especially in the final stretch of the year,” said Secretary of State Marco Gatti.
“The projected deficit has fallen to 5.6 million euros and the state’s liquidity remains stable. These conditions allow us to get through the coming months without having to resort to new financing, continuing on the path toward rebalancing public finances.”
On the debt front, the adjustment shows a reduction of 6.5 million euros in interest expenses compared with initial forecasts, thanks to the favourable terms secured through the recent international issuance of government bonds.
However, in 2026 the government will not proceed with the additional issuance of 50 million euros in bonds, which had originally been planned to begin replacing an equivalent share of irredeemable debt. The decision takes into account interest rate trends and the time needed to complete the operation. A new approach could be considered in the 2027 budget, depending on market conditions.
The Secretariat also addressed the issue of fuel-related revenue, which was raised during the council debate. “The data show no additional revenue for the state linked to this item: the cut in excise duties has not generated extra tax income,” the statement reads.
“On the contrary, the Republic has taken concrete action to contain fuel costs, through a support programme that has made it possible to distribute more than 18 million euros.”
The budget adjustment is largely technical in nature, aligning allocations with needs that emerged during the course of the year.
The measure also updates the projected budgets of public bodies and autonomous state enterprises, including the state companies for Public Works and for Services, the Social Security Institute (Istituto per la Sicurezza Sociale), CONS, the University of San Marino, the Civil Aviation and Maritime Navigation Authority, and the State Gaming Authority (Ente di Stato dei Giochi).
Among the adjustments is the purchase of a new firefighting vehicle for the Civil Police. Also confirmed is the allocation of 700,000 euros for San Marino’s participation in Expo 2027 Belgrade.
For state-owned sports facilities, the rules governing their use have been updated, allowing for agreements with sports federations to be signed for periods of up to twenty years.
