According to the implementation results of the state budget until the end of June 2026, fuel subsidy expenditures reached TND 2,427 million, while investment spending amounted to TND 1,665 million. This significant difference highlights the substantial burden of fuel subsidies on the state's finances. The surge in fuel prices globally, particularly due to the Iranian crisis, has contributed to this increase. The average price of a barrel of oil stood at approximately $92.6 by the end of June 2026.
The total subsidy expenditure in Tunisia rose by 12% to TND 3,486 million during the first half of 2026. This represents 35.7% of the projected subsidy expenditure for the year, as estimated in the finance law. Fuel subsidies accounted for about TND 2,427 million, marking an implementation rate of 48.6%. The increase in subsidy expenditures is primarily attributed to the rise in global oil prices.
The Tunisian government's budget for 2026 is based on several assumptions, including a gradual economic recovery, particularly in the agriculture, services, and tourism sectors. The budget assumes a growth rate of 3.3% and an average oil price of $63.3 per barrel. Additionally, it assumes a stable exchange rate for the Tunisian dinar against major currencies.
By the end of June 2026, the overall budget expenditure reached TND 24,917 million, representing a development of 8.9% compared to the same period in 2025. The implementation rate of budget expenditures stood at 39.2%. The distribution of budget expenditures during the first half of 2026 shows that TND 12,184 million was allocated to salaries and wages, representing a 4.9% increase compared to June 2025.
The increase in salary expenditures is primarily due to the implementation of the first installment of salary and wage increases in the public sector for the years 2026, 2027, and 2028. This measure aims to support public sector employees and enhance their purchasing power. The government has also prioritized job creation and combating unemployment, particularly among young people and those with limited income.
Social transfers also saw a significant increase, with TND 2,221 million allocated to social programs by the end of June 2026. This represents an implementation rate of 47.6% and a 24.1% increase compared to the same period in 2025. These transfers aim to improve income distribution, reduce poverty, and support national solidarity programs.
The Tunisian government has emphasized its commitment to enhancing the social dimension of public policies and consolidating the foundations of a social state. The implementation of the 2026-2030 development plan is expected to accelerate, with a focus on achieving tangible results and improving the impact of public investment on the economy and society.
Key points
- Fuel subsidy expenditure exceeded investment spending by TND 762 million in the first half of 2026.
- Total subsidy expenditure rose by 12% to TND 3,486 million during the first half of 2026.
- The Tunisian government has prioritized job creation, social transfers, and public investment to support economic growth and reduce poverty.
