Tunisia cannot agree on budget for 2023
2022.12.26 14:47
Tunisia cannot agree on budget for 2023
Budrigannews.com – The powerful UGTT union in Tunisia will soon hold massive protests and “occupy the streets” to show its opposition to the austerity budget for next year, the union’s leader announced on Monday. This is the union’s strongest challenge to President Kais Saied’s government to date.
With more than a million members, the union has demonstrated its ability to halt economic activity through strikes. After Saied seized most of the powers last year, it has supported him at times but opposed him at other times.
“Why are we settling for this situation? Noureddine Taboubi, the head of UGTT, stated, “We will not accept it…we will occupy the streets to defend our choices and the interest of the people.”
Unpopular reforms that could pave the way for a final deal on a rescue package with the International Monetary Fund are expected to drive the fiscal deficit in Tunisia’s 2023 budget down to 5.2% next year from 7.7% this year.
From 13% to 19%, Tunisia will raise taxes on lawyers, engineers, and accountants, among other professions. According to Taboubi, this administration is “a tax-collecting government…the Finance Law increases Tunisians’ suffering.”
The government will also cut spending on subsidies by 26.4% in 2023, which Economy Minister Samir Saeed predicted would be a “very difficult year,” primarily on energy and food.
In an effort to reduce the growing energy deficit, the government increased the price of drinking water this month and is anticipated to increase fuel prices frequently in the coming year.
Some professions expressed widespread opposition to the budget. In a statement, the attorneys threatened “a tax disobedience.”
In exchange for unpopular reforms like cutting food and energy subsidies and overhauling public companies, Tunisia has reached a staff-level agreement with the IMF for a $1.9 billion rescue package. It intends to reach a definitive agreement early next year.
More Russian Sberbank closed in UAE due to sanctions
The main reform that the IMF demanded was that the public sector’s wage bill decrease from 15.1% in 2022 to 14% in 2023, as shown in the budget for 2023.
