The budget for Tunisia's Ministry of Industry, Mines, and Energy is projected to rise by 48.2% to 7,890.2 million dinars (MD) in 2027, up from 5,325.6 MD in 2026. This increase is primarily due to higher oil prices on global markets, resulting from geopolitical tensions in the Middle East. The rising costs will lead to an increase in hydrocarbon subsidies.
The total expenditure of the ministry is expected to reach 7,892.8 MD, with nearly 99% allocated to intervention expenses, which have increased by 48.6% compared to 2026. The largest portion of this budget, 7,090 MD, is dedicated to hydrocarbon subsidies, representing a 42% increase from 2026. This significant allocation reflects the government's efforts to mitigate the impact of rising fuel costs on the economy and citizens.
The development interventions are expected to exceed 551.8 MD in 2027, a substantial increase from 60.5 MD in 2026. This growth is largely attributed to a 500 MD allocation for financing chemical fertilizers for agricultural use, benefiting the Tunisian Chemical Group. This initiative aims to support the agricultural sector and promote economic development.
The wage bill for the ministry is projected to increase by 20% to 47.9 MD in 2027. This rise is necessary to adjust the costs of recruitments made in 2025 and 2026, integrate agents from business centers under the Agency for Industrial Promotion and Innovation, and accommodate the planned recruitment of 106 new agents in 2027.
In addition to the industry budget, the government has allocated 80 MD to the Competitiveness Development Fund for the industrial, services, and craft sectors. Furthermore, 45 MD will be made available to the Energy Transition Fund. These allocations demonstrate the government's commitment to promoting economic growth, improving competitiveness, and supporting the transition to renewable energy.
According to the minister of Equipment and Housing, Salah Zouari, the budget increase is a response to the current economic challenges. The government's efforts to address these challenges and promote economic development will be closely monitored by the Assembly of People's Representatives.
Looking ahead, the industry department's expenditures are expected to reach 7,933.6 MD in 2028, before declining to 7,656.6 MD in 2029. The medium-term projections indicate a continued focus on managing the industry sector's finances and addressing the country's economic challenges.
Key points
- The 2027 budget for Tunisia's Ministry of Industry, Mines, and Energy has increased by 48.2% to 7,890.2 MD.
- The budget increase is primarily driven by rising oil prices and the resulting need for higher hydrocarbon subsidies.
- The government has allocated funds to support economic development, including 500 MD for financing chemical fertilizers and 80 MD for the Competitiveness Development Fund.
