Prime Ministry postpones setting of subsidy expenditure

Limiting annual promotions to 20% with the exception of certain bodies, rationalising the granting of overtime bonuses and limiting subsidy expenditure for the year 2024, based on the progress made in the new subsidy system, are the main recommendations of the Prime Ministry to the parties responsible for drawing up the draft State budget for 2024. In a circular published on its website on May 26, 2023, addressed to several parties, including ministries, presidents of structures, governors and heads of programmes, the recommendations included 8 key points relating to expenditure on salaries, management, interventions, investment and subsidies to public enterprises, private accounts, private funds and private missions. The government estimates that the wage bill over the last decade will have reached 22 billion dinars by 2023, compared with 6.7 billion dinars in 2010, hence the need to rationalise wage increases and control and restrict them to priority sectors, and continue the gradual reduction in the number of graduates from training schools, particularly for the Ministries of Defence, the Interior and Justice. The government is asking the parties responsible for drawing up the 2024 budget to continue working on the specific programme for early retirement and not to replace vacant posts. With regard to subsidy expenditure, the Prime Ministry pointed out that the review of subsidy and compensation mechanisms, while devoting 8.3% of gross domestic product (GDP) to subsidies in 2023, will help to provide financial resources in 2024 that can be channelled into a public investment, bearing in mind that the State is continuing to grant subsidies to disadvantaged categories, in addition to implementing development measures for the benefit of economic players.

Source: Agence Tunis Afrique Presse