In its note on economic and monetary developments published on Monday, the Central Bank of Tunisia (BCT) indicated that the examination of the provisional results of the implementation of the state budget at the end of November 2016 reveals a deterioration in the Budget deficit to 4.058 billion dinars against 1.865 billion during the same period of 2015.
This deterioration is prompted by the acceleration of non-principal expenditure on debt at a higher rate than that of own revenues, explains the BCT.
This shows that operating expenses have increased by 9.7% during this period (down from -0.1% a year earlier), reflecting the acceleration in remuneration expenditure (+ 16.8% + 12.7%).
As for subsidy spending, they were well below the 2015 level (-20%) and concerned only commodities and transport.
Furthermore, the BCT noted a marked recovery in capital expenditure, mainly due to the acceleration in the implementation of investment projects, which has reached almost 82% of the amount planned in the Finance Act 2016.
The government’s own resources grew by 5.3% in the first eleven months of 2016, compared to 1.1% a year earlier, while remaining below the rate of increase provided for in the 2016 Finance Law, i.e. 12.4% for the whole year.