BCT: Deterioration of budget deficit to 3,708 million dinars

According to the provisional results of the State budget execution by end of October 2016, a deterioration of the budget deficit (3,708 million dinars (MTD) was recorded against 1,527 MTD in the same period in 2015, due to the acceleration of the volume of expenditures apart from the debt principal at a higher pace than that of own resources.

According to the report published by the Central Bank of Tunisia on “Trend in monetary and economic situation and medium term outlook,” end of October 2016, the operating expenditures were up by 8.7% during this period (against 7.1% the year before), due to the rise in wage expenditures by 16.8% against 11.3%).

Contribution expenditures down by 30%

However, the contribution expenditures edged down by 30% compared with 2015, as regards basic products and transport.

Besides, a clear recovery in the capital expenditure was recorded, due mainly to the acceleration of the execution of investment projects.

The State’s own resources climbed up 3.6% against 1.6%), in the first ten months of 2016, while remaining below the growth rate projected by the 2016 finance law, that is 12.4% over the whole year. This evolution is due to the exceptional rise in the non-tax revenues (the 4G licence transfer for 471 MTD).

However, tax revenues almost stagnated at 0.1% compared with 11.4% scheduled in the 2016 finance law. This is due mainly to the poor performance of corporate taxes (notably oil companies).

The financing of the deficit in the first ten months of 2016 was assured by a more intensive use of interior financing against what was scheduled by the 2016 finance law.


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