The Tunisian government has launched a basket of austerity measures including a 5% cut in public spending to help reduce the budget deficit which hovers around 7.0% of GDP, finance minister Elyess Fakhfakh was cited as saying by the state news agency TAP. The government has started the implementation of new mechanisms to streamline subsidies and help achieve more social justice, he added. The subsidy bill has climbed to TND 5.5bn (USD 3.35bn) in 2013 from just TND 1.5bn in 2010, Fakhfakh said. The new mechanisms to streamline subsidies seek to recover the same level achieved in 2010, he added.
The new state budget for 2014 also aims to achieve more fiscal stability, Fakhfakh underscored, adding that public wages will remain unchanged in 2014. In 2013, salaries have increased 5% compared to 2010, the minister said.
The Tunisian government wants to arrange a EUR 300-500mn loan from the European Union and will seek loan guarantees from the USA to secure budget needs in 2014, Fakhfakh said last week. The budget deficit should narrow to 6.5% of GDP in 2014 from a forecast 7.4% of GDP in 2013 as the government will impose new strict fiscal measures, he added.
Related Articles
Egypt launches international bid round for gas exploration in Red Sea
Egypt’s Ministry of Petroleum and Mineral Resources has launched a new international bid round for oil and gas exploration in four offshore blocks in the Red Sea, according to Al Youm Al Sabea, ... more
BP expands gas output in Egypt’s West Nile Delta with new well start-up
British energy major BP (LSE, NYSE:BP) has started up the RW5 gas well in Egypt’s West Nile Delta (WND) project, adding around 80mn cubic feet per day of additional supply, Al Mal reported on ... more
Egypt reports multiple oil and gas discoveries in New Delta, Eastern and Western Deserts
Egypt’s Ministry of Petroleum and Mineral Resources has announced 18 new oil and gas discoveries across the New Delta, Eastern Desert, and Western Desert, marking one of the strongest exploration ... more