Tunisia's Prime Minister, Sarah Zahafrani Znazri, presented the country's 2027 budget and economic plan to parliament, forecasting a 3.1% economic growth rate, up from 2.7% expected this year. The proposed budget is approximately $23 billion, an 8.4% increase from 2026. The plan includes a 21% increase in subsidies, which will reach $11.846 billion, with 60% allocated to fuel and electricity, 34% to basic materials, and the rest to transportation.
The government plans to recruit 32,557 new employees in the public sector, bringing the total number of employees to 692.7 thousand by the end of 2027. The wage bill is expected to account for 39.7% of state expenditures. Additionally, $1.973 billion will be allocated to support low-income families, benefiting 395 thousand households. The government aims to increase individual income by 7.2% and keep inflation at 5.2%.
The government is counting on a 14.1% growth in investment, which will account for 16.4% of GDP. The plan also relies on the recovery of industry, extractive activities, tourism, transportation, and financial services. The current account deficit is expected to decrease to 3.7% of GDP, supported by exports, tourism revenues, and remittances from Tunisians abroad, which reached $6.9 billion in the first nine months of 2026.
The 2027 budget plan is part of Tunisia's development plan, which aims to reach the top third of middle-income countries by 2030. The plan includes continued increases in wages and pensions during 2026, 2027, and 2028. The government is optimistic about the plan's prospects, citing a rebound in economic activity and improved financial stability.
The budget plan has been submitted to parliament for approval, with a vote expected in the coming days. The plan's success will depend on various factors, including the global economic environment, domestic political stability, and the government's ability to implement reforms. If approved, the plan will provide a framework for Tunisia's economic development over the next year.
The opposition has expressed concerns about the budget plan, citing the high level of public debt and the need for more significant investments in social services. However, the government remains committed to its economic agenda, which it believes will lead to sustainable growth and improved living standards for Tunisians.
The budget plan's impact will be closely monitored by international organizations, including the International Monetary Fund, which has provided financial support to Tunisia in recent years. The plan's success will also be watched by investors, who are keen to assess the country's economic prospects and potential for growth.
Key points
- The 2027 budget plan forecasts 3.1% economic growth and a 21% increase in subsidies.
- The government plans to recruit 32,557 new employees in the public sector.
- The budget plan aims to reduce the current account deficit to 3.7% of GDP.
