The Tunisian government's proposed 2027 budget outlines public spending of 68.895 billion dinars, an 8.37% increase from 2026's 63.575 billion dinars. The budget projects revenues of 54.280 billion dinars, resulting in a deficit of 14.615 billion dinars. This increase in spending is largely driven by the need to fund public sector salaries and privileges. The budget allocates significant funds to various ministries, with education receiving the largest share.
The education sector is allocated 9.184 billion dinars, making it the largest budgetary allocation. Other key sectors include industry, mines, and energy, which receive 7.89 billion dinars, and interior, which receives 6.56 billion dinars. The defense sector sees a 12.3% increase in funding, with an allocation of 5.628 billion dinars, while the health sector receives 4.741 billion dinars, a 9% increase. These allocations reflect the government's priorities in key sectors.
To finance the budget deficit, the government plans to mobilize 19.845 billion dinars through domestic borrowing and 6.877 billion dinars through external borrowing. The state's debt is expected to reach 85% of GDP. This increased borrowing is largely driven by the need to fund public sector salaries, with the number of public sector employees expected to reach 692,702 in 2027. This number has raised concerns, given the country's population of 12 million.
The number of public sector employees in Tunisia has been a subject of debate, with some arguing that it is excessive. For comparison, Morocco has 575,000 public sector employees, despite having a population three times larger than Tunisia's. The Tunisian government has been promoting digitalization as a means of increasing efficiency, but the number of public sector employees remains high. This has significant implications for the country's finances.
The budget's focus on funding public sector salaries and privileges has raised concerns about the government's ability to invest in infrastructure and stimulate economic growth. The country's economy has been struggling, and the increased debt burden is likely to have significant implications for its future prospects. The government's budget priorities will be closely watched by economists and policymakers.
The examination of the 2027 budget by parliamentary committees is ongoing, with plenary sessions scheduled for November 9 and 10, 2026. The budget's proposals will have significant implications for the country's economic trajectory. The government's ability to manage its debt and prioritize investments in key sectors will be crucial in determining the country's future prospects.
The 2027 budget's focus on funding public sector salaries and privileges highlights the challenges facing Tunisia's economy. With a high debt burden and limited resources, the government must prioritize its spending and make difficult decisions about how to allocate its resources. The budget's impact on the country's economic growth and stability will be closely watched in the coming months.
Key points
- Tunisia's 2027 budget projects increased public spending and debt to fund public sector salaries and privileges.
