This archive report was first published on 29 December 2021.
Published on December 29, 2021, Tunisia's finance minister, Sihem Boughdiri, outlined the country's 2022 budget, which aims to address the nation's economic challenges.
The budget allocates 57.3 billion dinars ($19.8 billion, 17.6 billion euros) for spending, a three percent increase from the previous year. This move is expected to result in a deficit of around 6.2 percent of the country's gross domestic product (GDP), according to Boughdiri.
To cover the 2022 expenditures, the government plans to borrow almost 20 billion dinars ($6.9 billion, 5.7 billion euros), which will bring the country's debt to 82.6 percent of GDP. Approximately two-thirds of this amount will come from foreign lenders, while the remaining portion will be sourced domestically.
Tunisia has been grappling with economic difficulties for several years, exacerbated by the COVID-19 pandemic. The country is facing high inflation and unemployment rates, with the latter standing at around 18 percent. Furthermore, foreign debt in 2021 reached 100 percent of GDP.
In an effort to replenish the state's coffers, the authorities are seeking to secure a bailout deal with the International Monetary Fund (IMF). Boughdiri confirmed that negotiations with the IMF will resume at the beginning of 2022.
“Negotiations with the IMF will restart at the beginning of 2022,” Boughdiri said.
