The deficit forecast for 2026 has fallen from €13.7 million to €5.6 million. This 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 forecasts based on trends recorded over the course of 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 the two months still remaining before the end of the fiscal year.
“The eight million euros in additional 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 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 borrowing, continuing on the path toward rebalancing public finances.”
On the debt front, the adjustment shows a reduction of 6.5 million euros in interest payments compared to initial forecasts, thanks to favourable conditions secured through the recent international issuance of government bonds.
However, San Marino will not proceed in 2026 with the additional issuance of 50 million euros in bonds, which had initially been planned to begin replacing an equivalent amount of irredeemable debt. The decision takes into account interest rate trends and the time required to complete the operation. A new approach may 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 does not show any increase in state revenue linked to this item: the reduction in excise duties has not generated additional 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 over 18 million euros.”
The budget adjustment is largely technical in nature, aligning allocations with needs that emerged over the course of the year. The measure also updates the forecast budgets of public bodies and autonomous enterprises, including the State Public Works and Services companies, the Social Security Institute (ISS), CONS, the University of San Marino, the Civil Aviation and Maritime Navigation Authority, and the State Gaming Authority.
Among the adjustments is the planned 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.
Rules governing the use of state-owned sports facilities have also been updated, allowing agreements with sports federations to be signed for periods of up to twenty years.
