Joint Meeting of Parliamentary Finance Committees and National Council of Regions and Provinces
On October 30, 2024, the parliamentary finance committees and the national council of regions and provinces held a joint meeting to hear the Minister of Finance present the state budget project for 2025.
Budget Overview
The Minister announced that the state budget will reach 78,231 million dinars, representing a 3.3% increase compared to the 2024 forecasts. The main objective for the coming year is to control expenses, reduce the deficit, and strengthen economic autonomy, thereby limiting external debt.
Economic Context
The Minister began by recalling the main assumptions that guided the elaboration of the 2024 budget, highlighting the global and national economic evolution. She also emphasized that, thanks to better expense management, no budget rectification will be necessary for 2024.
Budget Priorities for 2025
For 2025, the government plans to contain the deficit at -10,150 million dinars, largely financed by loans amounting to 28,003 million dinars. The Minister presented the priorities for 2025, including:
- Reducing external borrowing
- Improving social support management and protecting vulnerable groups
- Honoring the state's commitments, including debt repayment on time
- Fostering economic development through employment programs and economic development projects
Economic Prospects
Deputies questioned the Minister about the relevance of the 3.2% growth hypothesis for 2025 and the means of diversifying resources beyond fiscal revenues. Discussions focused on measures to:
- Strengthen tax collection
- Reduce subsidies on fuels and basic products
- Ease pressure on the banking sector by limiting internal borrowing
Informal Sector Integration
The Minister also discussed efforts to integrate the informal sector, which currently represents 27% of GDP. She highlighted the implementation of a regulatory strategy to broaden the tax base and capture more revenue, including through the taxation of independents and content creators.
Promoting Financial Autonomy
Finally, the Minister stressed the need to promote a culture of work and financial autonomy, despite persistent economic challenges. She also announced the recent publication of a decree aimed at facilitating the implementation of pending public projects, as well as major tax reforms to optimize state revenues while supporting private initiative and investment.
