Rising tax revenues helps shrink Tunisia’s H1 2022 budget deficit

TAP

Tunisia’s budget deficit improved to TND470.8 million ($147.92 million) in H1 2022 from TND1.9 billion in the same period last year, state news agency TAP reported, citing the finance ministry.

This lower deficit is mainly driven by higher budgetary resources, which grew to TND19.3 billion in June 2022 from TND15.8 billion in June 2021 as tax revenues advanced 19 percent to TND17.4 billion.

Meanwhile, budgetary expenses climbed 7.7 percent year-on-year to TND19 billion.

The upward trend in budgetary expenses results from compensation expenditures and operating expenses rising 5.3 percent and 12.8 percent to more than TND10.5 billion and TND4 billion, respectively.

In addition, financing costs – interest on debt – soared 12.3 percent to TND2.1 billion.

The ministry’s data showed a drop in cash resources of 23 percent to TND5.4 billion. These funds are earmarked solely for the repayment of the principal on debt.

Public debt outstanding exceeded TND106.7 billion, 77.7 percent of the gross domestic product (GDP), in H1 of 2022, against TND99.2 billion during the same period last year (79.4 percent of GDP).

Domestic debt reached TND40.6 billion, while external debt hit TND66 billion, the news agency reported.