Tunisia's Ministry of Industry, Mines, and Energy is set to see its budget rise to 7890.2 million dinars in 2027, marking a 48.2% increase from 5325.6 million dinars in 2026. This significant hike was announced by Salah Zouari, Minister of Equipment and Housing, during a review of the budget before parliamentary committees on November 3, 2026, as part of the 2027 finance bill. Despite this overall increase, a closer look reveals contrasting trends within the industry sector.
The bulk of the budget increase is attributed to subsidies for hydrocarbons, which are set to reach 7090 million dinars in 2027, up from 4993 million dinars in 2026. This represents a 42% increase of 2097 million dinars. Hydrocarbon subsidies now account for nearly 90% of the mission's credits, and over 80% of the total increase between 2026 and 2027. The minister cited rising international oil prices, fueled by geopolitical tensions in the Middle East, as the reason for this surge.
The increased hydrocarbon subsidies will significantly impact public spending. The intervention expenses, which include these subsidies, are projected to reach 7823.2 million dinars in 2027, a 48.6% increase from 2026. This constitutes nearly 99% of the mission's total budget. In contrast, the industry program will see its funding decrease to 169.3 million dinars in 2027, down from 188.9 million dinars in 2026, representing a 10.4% decline.
The energy program, however, is set to benefit from 7200.1 million dinars in 2027, up from 5115.8 million dinars in 2026. The mining program will also see a significant increase, rising from approximately 8 million dinars to 508.2 million dinars. This increase is largely due to financing for the Tunisian Chemical Group (GCT), with 500 million dinars allocated for chemical fertilizers for agricultural use.
The 2027 budget for the industry mission reveals a shift in priorities, with a focus on energy and hydrocarbon subsidies rather than direct support for the industry sector. The development interventions are set to increase from 60.5 million dinars in 2026 to 551.8 million dinars in 2027, largely due to the financing of chemical fertilizers.
In addition to the budget allocations, the industry mission is also planning to recruit 106 new employees in 2027. The wage bill for the mission is expected to rise, contributing to the overall increase in expenditure. This development comes as the government navigates the challenges of supporting key sectors while managing public finances.
The 2027 budget for Tunisia's industry, mines, and energy sector reflects the country's efforts to balance competing priorities. With hydrocarbon subsidies dominating the budget, the decrease in industry credits raises questions about the sector's future growth and development. As the country moves forward with its economic plans, the effectiveness of these budget allocations will be closely watched.
Key points
- The 2027 budget for Tunisia's industry, mines, and energy sector is 7890.2 million dinars, up 48.2% from 2026.
- Hydrocarbon subsidies account for nearly 90% of the mission's credits in 2027.
- Industry program credits decrease by 10.4% to 169.3 million dinars in 2027.
