Lebanon’s parliament approved the 2026 state budget late Thursday, bringing to a close three days of heated debate marked by political tension, social pressure, and growing public anger over the rising cost of living.

The budget passed with 59 votes in favor, 34 against, and 11 abstentions in the 128-seat chamber, highlighting deep divisions over how to balance fiscal restraint with mounting social demands.

Lawmakers met in a highly charged atmosphere, as discussions over budget figures quickly turned into a confrontation over public-sector wages and retirees’ pensions. The government framed the budget as a necessary step toward restoring fiscal balance, but several MPs warned it risked worsening social hardship at a time when incomes continue to be eroded by inflation.

Some lawmakers also argued that passing a budget without decisive political choices on reform — including the long-standing issue of disarmament — would only deepen Lebanon’s political and institutional deadlock.

Inside the chamber, exchanges grew increasingly tense, with repeated objections and calls to suspend the session. Much of the confusion centered on a proposed $80 increase for public-sector employees and whether it would be incorporated into base salaries or granted as a temporary allowance.

Finance Minister Yassine Jaber defended what he described as a budget of “fiscal discipline,” saying the government was committed to improving wages after the budget’s approval but would not link them to the exchange rate in order to preserve monetary stability.

Jaber said the budget aimed to achieve a primary surplus and unlock international loans and grants earmarked for key sectors. His remarks, however, failed to defuse opposition, and tensions escalated to the point that Speaker Nabih Berri ordered the live broadcast of the session suspended.

Outside parliament, the political standoff spilled into the streets. In an unprecedented move, retired military personnel entered Nejmeh Square and reached the entrance of parliament, alongside demonstrations by teachers’ unions and other public-sector employees.

As pressure mounted, Berri convened an emergency meeting bringing together Prime Minister Nawaf Salam, the ministers of finance, defense, and interior, and representatives of the protesters. The talks focused on revisiting the wage-increase formula ahead of its final implementation.

Deputy Speaker Elias Bou Saab described the meeting as constructive, while retired Brigadier General Shamel Roukoz said protesters were demanding a 50 percent salary increase and had been given until the end of February to reach a fair balance among sectors.

Salam denied remarks attributed to him suggesting that no funds were available for teachers. He reiterated his refusal to make promises that could not be fulfilled, while confirming that wage adjustments would begin before the end of February and that dialogue would continue following the budget’s approval.