The Tunisian government's budget for the ministry of industry, mines and energy is set to increase by 48.2% in 2027, reaching 7,892 million dinars, up from 5,325.6 million dinars in 2026. This significant rise is primarily due to the surge in global oil prices caused by geopolitical tensions in the Middle East. As a result, the cost of hydrocarbon subsidies is expected to increase.
According to Minister of Equipment and Housing, Salah Zouari, the total expenditure of the ministry will be 7,892.8 million dinars, with nearly 99% allocated to intervention expenses, which have risen by 48.6% compared to 2026. The largest portion of this budget will go towards hydrocarbon subsidies, with 7,090 million dinars allocated for 2027, up from 4,993 million dinars in 2026, representing a 42% increase.
The development interventions are expected to exceed 551.8 million dinars in 2027, significantly up from 60.5 million dinars in 2026. This increase is largely due to a 500 million dinar allocation for financing chemical fertilizers for agricultural use, benefiting the Groupe Chimique Tunisien (GCT). The wage bill is also set to rise by 20% to 47.9 million dinars to adjust for new recruitments in 2025 and 2026.
In addition to these allocations, 80 million dinars will be set aside for the Competitiveness Development Fund in the industrial, services, and craft sectors. Another 45 million dinars will be made available for the Energy Transition Fund. These funds aim to support the development and modernization of various industries in Tunisia.
Looking ahead, the ministry's expenditures are projected to be 7,933.6 million dinars in 2028 but are expected to decline to 7,656.6 million dinars in 2029. This fluctuation reflects the government's efforts to manage its budget in response to changing global economic conditions.
The increase in the budget for the ministry of industry, mines and energy reflects the government's efforts to support the sector amid rising global energy costs. The allocations for 2027 indicate a focus on subsidies and development interventions to stimulate growth.
The budget adjustments for the ministry of industry, mines and energy in Tunisia for 2027 highlight the challenges of managing economic policies in a volatile global environment. The government's strategy involves prioritizing sectors critical to the country's economic stability and growth.
Key points
- The Tunisian government has increased the budget for the ministry of industry, mines and energy by 48.2% for 2027.
- The increased budget is primarily due to rising global oil prices and the consequent need for higher hydrocarbon subsidies.
- The budget for 2027 includes significant allocations for development interventions and funds aimed at supporting industrial and energy sector competitiveness.
