State-Supported Compensation Costs for the First Half of 2024 Revealed
The cost of state-supported compensation for the first half of 2024 has been disclosed. This chapter has consumed 2,810 billion Tunisian dinars (Mtnd) in six months, compared to 2,961 Mtnd by the end of June 2023 and 11,667 Mtnd budgeted for the entire year 2024. To put this amount into perspective, it's worth noting that corporate taxes totaled 2,868 Mtnd over the same period.
Basic foodstuffs have received subsidies of 422 Mtnd, compared to 324 Mtnd during the same period in 2023. The fuel envelope has reached 2,051 Mtnd (2,278 Mtnd in the first half of 2023), with 337 Mtnd allocated to transportation companies (359 Mtnd in 2023). At this rate, actual expenditures may be lower than expected, contributing to a reduction in external financing needs and the budget deficit.
However, while we advocate for maintaining subsidies for basic foodstuffs, we believe that fuel subsidies should be reduced. The cost is exorbitant. As long as the state foots the bill, businesses and individuals will continue to delay their energy transition. Why not allocate even 20% of this envelope to a program subsidizing companies that switch to clean energy? This would amount to approximately 1,500 Mtnd per year, invested in this priority area.
Admittedly, consumers will have to pay a higher price at the pump. It's time they understand that the current situation is also costing them their health and continuously driving up the prices of all other products and services they consume. We must not focus solely on short-term gains, as this type of thinking will continue to hold us back in all areas.
