Experts reveal latest economic situation in Tunisia

A group of experts at a global financial gathering demanded that Tunisia's economic and financial situation to be increased to 5 per cent of real GDP in order to reduce pressure on the public budget without resorting to higher taxes in the coming years,

In an economic forum held in Tunis, on Monday, experts and financial observers stressed the importance of providing financial resources to finance the budget for 2018, because the development of Tunisia's budget over the past five years did not take into account the balance between revenues and expenditures.

Last year's economic growth rate was only 1 percent, with 2.3 percent expected this year, which cannot provide enough jobs for 630,000 unemployed people and cannot create enough non-taxable resources to finance the budget.

In addition to Tunisia's growth problem, the current 9 per cent fiscal deficit problem, with the absence of economic and fiscal policies (delays in tax reform), but also other planned reforms, have further complicated the economic situation.

The participants in the forum pointed to the need to improve the financial revenues of the state, accelerate reforms related to the collection system, expand the tax base, pay public investment and partnership between the public and private sectors, and increase non-tax revenues through privatizations in a number of state institutions, financial institutions.

Experts said that control of management expenses, represented by wages and support funds, maintaining public investment while controlling current expenses, and adopting better coordination between monetary and fiscal policy, were proposals to ensure budget control for the coming year.

In this regard, the economic expert Walid bin Saleh called for a freeze the increases in public sector wages, and doing a review of the program agreed upon with the International Monetary Fund regarding the extension of the reforms and the creation of a Tunisian treasury agency that would provide a clear vision of public finances.

On the other hand, the Tunisian Union for Industry, Trade and Handicrafts, called on the government to seek alternative solutions to support tax resources by providing a climate conducive to wealth creation and growth, as well as by addressing the parallel economy and chaotic trade. The union stressed that a number of vital economic sectors are living in difficult conditions due to the general economic and social climate in the country, especially the continuous deterioration of the value of the public sector.