Tunisia's Ministry of Industry, Mines, and Energy has seen its 2027 budget increase by 48.2% to 7890.2 million Tunisian dinars ($2.56 billion), up from 5325.6 million dinars in 2026. This significant rise is primarily attributed to the escalating costs of fuel subsidies, driven by global oil price hikes. The surge in budget is a result of the government's efforts to mitigate the impact of rising energy costs on the economy.
The increase in budget is largely due to the rising prices of oil in global markets, caused by tensions and conflicts in the Middle East, as well as disruptions in maritime navigation and attacks in the Strait of Hormuz. According to Minister of Equipment and Housing, Salah Zwari, these factors have led to a substantial increase in fuel subsidy costs. The government's efforts to support the economy through fuel subsidies have resulted in a significant rise in budget allocation.
The 2027 budget for the Ministry of Industry, Mines, and Energy stands at 7892.8 million dinars when including self-financing resources estimated at 2.6 million dinars. The bulk of the budget, 7823.2 million dinars, is allocated for interventions, representing a 48.6% increase from 2026. Fuel subsidies account for the largest share of these allocations, with 7090 million dinars earmarked for 2027, up from 4993 million dinars in 2026.
The budget for developmental interventions has also seen a significant increase, rising to 551.8 million dinars from 60.5 million dinars in 2026. This substantial rise is largely due to the allocation of 500 million dinars for a program to finance chemical fertilizers for agricultural use, benefiting the Tunisian Chemical Group. The government's focus on supporting key sectors, such as agriculture, is reflected in the budget allocations.
The distribution of budget allocations across programs shows that the Energy Program will receive 7200.1 million dinars, up from 5115.8 million dinars in 2026. The Mining Program will receive 508.2 million dinars, a significant increase from 8 million dinars in 2026. This rise is primarily related to allocations for the Tunisian Chemical Group. In contrast, the Industry Program will see a reduction in budget allocation.
The budget for leasing has increased by 20% to 47.9 million dinars, up from 40 million dinars in 2026. This rise is attributed to general wage increases, adjustments in recruitment costs, and promotions and recruitments planned for 2027. On the other hand, operating expenses have decreased by 2.9% to 12.1 million dinars. The government's efforts to manage its expenses while supporting key sectors are reflected in these budget allocations.
The 2027 budget also includes plans for 106 new recruitments and allocations for special funds, including 80 million dinars for the Competitiveness Support Fund and 45 million dinars for the Energy Transition Fund. The government's focus on supporting the transition to renewable energy and enhancing competitiveness is reflected in these allocations. The budget aims to support Tunisia's economic growth and development.
Key points
- Tunisia's 2027 industrial and energy budget surges 48.2% to $7890.2M due to rising fuel subsidy costs.
- The budget increase is primarily driven by global oil price hikes and tensions in the Middle East.
- Fuel subsidies account for the largest share of the budget, with 7090 million dinars earmarked for 2027.
