Tunisia's 2027 Budget Relies on Debt for Public Sector Wages

The proposed 2027 Tunisian state budget outlines total public spending of 68.895 billion Tunisian dinars (TND), reflecting an 8.37% increase over 2026. A significant portion, amounting to 27.3 billion TND, is allocated for public sector salaries, forcing the government to rely on borrowing. With expected revenues at 54.280 billion TND, the budget faces a deficit of 14.615 billion TND. To bridge this gap, the state plans to secure 19.845 billion TND in domestic debt and 6.877 billion TND in foreign debt. Expenditure priorities include education with 9.118 billion TND, followed by industrial and mining sectors, the interior, and a defense budget of 5.628 billion TND. By the second quarter of 2026, Tunisia’s external debt reached approximately 43 billion USD, with debt servicing costs estimated at 7.9 billion TND. The budget proposal is currently under parliamentary review with a deadline set for November 10.