Tunisian economist Moez Sossi has proposed that the 2027 finance bill prioritize protecting purchasing power and promoting economic growth. He emphasized the need for a balanced approach that addresses the country's financial constraints while supporting economic development. Sossi, a professor of economics at the University of Carthage, made these remarks in an interview with the Tunisian Africa News Agency.
Sossi suggested that the 2027 finance bill should focus on expanding the state's development margin while maintaining purchasing power and financial balances. He recommended prioritizing investment in key sectors such as water, energy, transportation, and maintenance. Additionally, he emphasized the importance of improving tax collection, simplifying tax compliance, and combating tax evasion.
The economist proposed that the government prepare the 2027 budget based on two scenarios: a baseline scenario and a stress scenario, taking into account developments in energy prices, exchange rates, and growth. He stressed that these scenarios should consider the potential impact on subsidies, debt servicing, and financing needs. The Ministry of Finance is currently preparing the 2027 finance bill, which is expected to be submitted to the Council of Ministers for discussion and then to the Parliament by October 15.
Sossi also emphasized the need to protect priority investments, particularly in the water, energy, and transportation sectors. He suggested that the government prioritize projects that are ready to be implemented or have stalled but have economic viability. Furthermore, he recommended publishing quarterly indicators to track progress and costs.
The economist highlighted the importance of improving social protection and subsidy programs. He suggested updating beneficiary data, reducing leakage and misuse of subsidized goods, and ensuring that benefits reach those entitled to them. Sossi also recommended linking transfers to public institutions with measurable objectives, such as reducing losses and improving service quality.
Sossi noted that the global economic outlook, as predicted by the International Monetary Fund, suggests a moderate growth rate of 3.4% in 2027, accompanied by a decline in inflation. However, he cautioned that this growth is contingent upon developments in energy markets, trade, and geopolitical tensions. He also emphasized the need to consider international monetary policy, financing costs, and energy prices when preparing the 2027 budget.
Domestically, Sossi observed that Tunisia's growth prospects remain modest, with the World Bank predicting a growth rate of 2.3% in 2026 and an average of 2.1% from 2027 to 2028. He stressed that the country's ability to generate additional tax revenue through economic activity will be limited, and addressing unemployment will depend on the state's and private sector's capacity to stimulate investment.
Key points
- The 2027 finance bill should prioritize protecting purchasing power and promoting economic growth.
- The government should prepare the 2027 budget based on two scenarios: a baseline scenario and a stress scenario.
- The bill should focus on expanding the state's development margin while maintaining purchasing power and financial balances.
