San Marino’s Grand and General Council (Consiglio Grande e Generale) will reconvene from Monday, October 26, for a new working session that will run through Thursday, October 29. Among the most significant items on the agenda is the amendment to the state and public entities’ projected budget for 2026, which comes up for a second reading and is now headed toward a final vote.
The bill, presented by the Secretary of State for Finance, Marco Gatti, touches on several areas of public accounts, updating revenue and expenditure forecasts approved at the end of last year. The government describes the measure as largely technical, though it does include some notable financial operations.
The most substantial of these concerns San Marino’s public debt. The measure provides for raising the amount of government bonds authorized for 2026 from €450 million to €500 million, with an additional €50 million to be placed on the Italian market.
This money, however, will not go toward financing new spending. The goal is to use it to redeem €50 million worth of perpetual bonds held by Cassa di Risparmio, replacing them with new debt instruments. According to the government, the operation will not increase overall debt levels but will instead change its composition.
Also on the debt front, €5 million in dividends distributed by Cassa di Risparmio from 2025 profits will be allocated to repaying the perpetual bonds.
There are also changes on the revenue side. The amendment forecasts an additional €8 million in general income tax (Imposta generale sui redditi) revenue, reflecting changes introduced by the November 2025 tax reform. Other revenue streams — particularly those tied to the single-stage tax (imposta monofase) and petroleum products — are also outperforming initial projections.
On the spending side, one of the most significant items is an allocation of €2 million for a potential international arbitration case. These funds would be used to cover legal defense costs should it become necessary to appoint one or more attorneys.
Another item concerns the Republic’s participation in Expo 2027 Belgrade, set to take place in Serbia from May 15 to August 15 next year. The budget earmarks €700,000 for organizing San Marino’s presence at the international event.
The amendment also covers costs linked to relocating sessions of the Grand and General Council and its committees to the Kursaal Congress Center, made necessary by renovation works at Palazzo Pubblico.
It also replenishes reserve funds for mandatory and unforeseen expenses, which are used in particular by the State Advocacy Office (Avvocatura dello Stato) to cover compensation payments ordered in legal proceedings.
Among the other changes are provisions regarding the management of public sports facilities, allowing the Congress of State to enter into agreements with sports federations to improve the use and management of these venues.
One positive development for public finances comes from the cost of debt. Thanks to favorable terms secured through the recent international bond issuance, the government reports a €6.5 million reduction in interest expenses compared to initial estimates.
Regarding the broader financial outlook, the Finance Secretariat reports that the state’s liquidity remains stable. At present, there is therefore no need to take out balancing loans or seek additional financing to meet budget requirements.
The government has announced that any amendments submitted during the second reading will be limited to the technical updates needed to bring the accounts of the state and public entities into line.
Debate on the budget amendment is part of the council session scheduled for October 26-29, while parliamentary work will continue on November 4, 5 and 6, when sessions return to Palazzo Pubblico.
