Tunisian President Kais Saied on Thursday called for imposing additional taxes on the rich, instead of lifting subsidies on some foodstuffs, stressing that "no minister may act outside the policy set by the President of the Republic."
This comes as Tunisian Finance Minister Sihem Nemsia warned that any imbalance in the repayment of foreign loans would lead to "bankruptcy of the state", after parliament approved an agreement for Tunisia to obtain a loan from the African Export-Import Bank worth half a billion dollars.
Saeed stressed – according to a statement by the presidency shortly after his meeting with Prime Minister Najla Boden at the Carthage Palace – "the need to achieve the desired (financial) balance by envisioning new ways based on justice and the preservation of civil peace."
"Instead of lifting subsidies in the name of rationalizing them, additional (taxes) can be used on those who benefit unjustly by subsidizing many items (referring to the rich) and without submitting to any external dictates," Saeed said.
"There is no room for any minister to act outside the policy set by the President of the Republic," he said, stressing that "harmony is required among all members of the government."
New Loan
The Tunisian parliament yesterday approved an agreement to obtain a loan from the African Export-Import Bank during a plenary session broadcast on its YouTube page.
The contract was approved by 126 out of 154 deputies, 5 deputies reserved, and two deputies were rejected, without knowing the status of the rest of the members.
In a speech during the session, the finance minister explained that "debt (borrowing) is linked to external factors dictated by the repercussions of the Corona crisis and the Russian-Ukrainian war."
She stated that "the volume of debt reached about $ 2022 billion during the end of 37, representing 79.9% of GDP, of which 46.7% are external loans and 33% are internal loans."
According to the Tunisian minister, "loans are not only to support the budget, but there are loans to finance projects and support investment."
Tunisia is witnessing a severe economic crisis exacerbated by the repercussions of the outbreak of the Corona pandemic, and the high cost of importing energy and basic materials following the Russian-Ukrainian crisis that began on February 24, 2022.
In May, inflation reached about 10.01%, while the unemployment rate rose in the first quarter of this year to 16.1%, compared to 15.2% in the fourth quarter of last year, according to official figures.
In January, the governor of the Central Bank of Tunisia said that the bank estimated that inflation in 2023 would rise to 11%, up from 8.3% in 2022.