According to Tunisia's Ministry of Finance, the state's budget execution at the end of June 2026 shows that fuel subsidies have reached 2.427 billion dinars. This represents 48.6% of the credits allocated in the 2026 finance law. The substantial allocation for fuel subsidies nearly matches the 2.533 billion dinars spent on development during the first six months of the year. This development has raised concerns about the distribution of resources in the budget.
The total expenditure on subsidies has reached 3.486 billion dinars in the first half of the year, marking a 12% increase compared to the same period in 2025. The Ministry of Finance attributes this rise primarily to the evolution of oil prices on international markets. The 2026 budget was based on an average Brent price of 63.3 dollars per barrel. The increase in fuel subsidies has significant implications for the country's overall budget.
In contrast to the high fuel subsidies, development spending stands at 2.533 billion dinars after six months, representing a 21.2% execution rate of the annual forecasts. The Ministry of Finance explains this slow pace by the nature of development expenditures, with a significant portion of disbursements typically occurring in the second half of the year. The government has affirmed its efforts to accelerate stalled or delayed public projects.
The main expenditure category remains remuneration, with 12.184 billion dinars spent in the first half of the year. This represents 48.2% of the credits allocated for the entire year and a 4.9% increase compared to the previous year. The Ministry of Finance attributes this rise to the implementation of the first tranche of salary increases in the public sector for the years 2026, 2027, and 2028.
The total budget expenditures paid have reached 24.917 billion dinars at the end of June, marking an 8.9% increase over the past year and a 39.2% global execution rate. The expenditures on intervention have reached 6.574 billion dinars, representing a 14.8% increase. More than half of this envelope corresponds to subsidy expenditures.
Social programs have benefited from 2.221 billion dinars, representing a 24.1% increase compared to the end of June 2025. The execution rate of these programs has reached 47.6% of the credits allocated in the finance law. The government continues to prioritize social spending amidst budget constraints.
The contrasting trends in Tunisia's budget execution highlight the challenges of managing public finances. With fuel subsidies and remuneration driving expenditure growth, the government must balance its priorities while addressing development needs. The execution of development projects is crucial to achieving long-term economic goals.
Key points
- Fuel subsidies have reached 2.427 billion dinars, nearly matching development spending of 2.533 billion dinars over six months.
- Remuneration expenditures have reached 12.184 billion dinars, representing 48.2% of the annual allocation.
- Development spending has reached only 21.2% of annual forecasts, with efforts underway to accelerate public projects.
