An International Monetary Fund (IMF) staff team, led by Bjoern Rother,
visited Tunisia from October 4–6 to discuss the country’s recent economic
developments and the authorities’ policy plans under Tunisia’s economic
reform program supported by a four-year IMF Extended Fund Facility (EFF)
arrangement
(see Press Release 16/238).
“IMF staff and the economic team of the new government agreed that front
and center of all reform efforts is the need to create jobs and contain
debt. Better managing the public-sector wage bill, which is among the
highest in the world and absorbs half of total expenditure, will be
indispensable. The team noted the authorities’ commitment to translate
their reform ambitions into action in the 2018 budget bill.
“Specifically, the budget bill would focus on reducing the deficit through
comprehensive tax reform and rationalizing inefficient expenditure. It
would also dedicate more resources in support of SMEs. Executed within an
adequate framework, investments through public-private partnerships (PPP)
could improve the quality of infrastructure and help free up resources for
other high priority spending on health and education.
“Ensuring the sustainability of the social security system, improving
governance and oversight of loss-making public enterprises, and modernizing
the civil service remain critical structural reforms to reduce fiscal risks
and make the overall economy more competitive.
“Discussions on the authorities’ policies supported by the arrangement
under the EFF will continue in Washington during the Annual Meetings from
October 13–15.”
