The International Monetary Fund has predicted that Tunisia's GDP growth will recover to 3.8 percent during the current 2021 year, as the effects of the Corona pandemic begin to recede.
The IMF urged Tunisia to reduce the wage bill and reduce energy subsidies to reduce the fiscal deficit, which puts more pressure on the fragile government as the country suffers a severe financial and political crisis. Noting that reducing the fiscal deficit should be the goal of the fiscal policy and related reforms, with priority given to spending on public health, investment and protecting social spending directed to the beneficiaries. The wage mass rose as a result of additional employment in the health sector to cope with the Corona pandemic, to 17.6 percent of GDP, which is among the highest in the world. The IMF estimates that the fiscal deficit (excluding grants) is at 11.5 percent of GDP, and the central public debt rises to about 87 percent of GDP.
The Fund called for the necessity to implement wide-ranging reforms of public institutions in order to reduce their potential liabilities. It also called for the adoption of a plan to reduce the risks of these institutions on the public finances and the financial system, strengthen institutional governance, and improve financial reporting and transparency.
Source (Al-Arab-London based Newspaper, Edited)
