Tunisia’s debt-to-GDP ratio will continue its downward trend, falling from 82.23% in 2024 to 80.46% in 2025 and 76.39% in 2027, Finance Minister Sihem Boughdiri Nemsia said on Tuesday at a joint plenary session of the Assembly of People’s Representatives (ARP) and the National Council of Regions and Districts (CNRD) on the Draft Finance Law for 2025.
In this context, the Minister stressed that, in accordance with the guidelines set out in the 2025 Finance Law, the government is working to achieve these objectives by improving the primary budget result and controlling the cost of public debt, as well as gradually reducing the budget deficit from 6.3% of GDP in 2024 to 5.5% in 2025.
In this context, she assured that the budget deficit will drop to 4.7% in 2026 and 3.6% in 2027. She added that this would require a number of indicators to be met, including achieving a growth rate of no more than 3.2% in 2025, maintaining the stability of the value of the dinar, reducing the volume of external debt to avoid the impact of exchange rates, and relying on domestic debt.
The Finance Minister stressed that all these factors would help reduce financing needs from 17.1% of total GDP in 2024 to 15.4% in 2025, 12% in 2026 and 10% in 2027.
The 2025 Finance Bill reflects a clear vision of the State’s social project
Nemsia pointed out that the 2025 Finance Bill reflects a clear vision of the State’s social project, with a view to achieving a balance between the economic and social dimensions, as well as sustainable development. This project is part of a long-term vision in line with the country’s reality and global and regional changes.
On another front, she said that the suspension of VAT on the import of certain medicines is intended to combat the financial deficit of the Central Pharmacy. The suspension of VAT on the import of certain locally produced generic medicines is intended to combat the financial deficit of the PCT.
Answering questions from MPs at the joint plenary session, Nemsia said that the decision was taken after examining the difficult situation of the Central Pharmacy and as part of efforts to preserve its role.
She added that the measure, which should improve the Central Pharmacy’s liquidity, would have little impact on the local production of medicines, as prices are set by the state.
The PCT plays a regulatory role, she explained, adding that imports will only take place after careful scrutiny, especially as the local pharmaceutical industry enjoys a number of advantages from the state.
Nemsia pointed out that the pharmaceutical industry benefits from a reduction in VAT from 19% to 7% on its turnover and on products and materials intended for the pharmaceutical industry.
Purchase of 4-5 thousand cattle per year
On the other hand, in response to questions from MPs during the examination of the 2025 Finance Bill, Nemsia announced that “a budget of 10 million dinars (MD) will be mobilized in the form of an exceptional bonus to enable credits to be granted to breeders from banks’ own funds to finance the purchase of cows as part of the rebuilding of the national herd”.
The measure to support small cattle breeders will allow the purchase of 4 to 5,000 cattle per year in the period 2025-2028,” she said, adding that the total value of the financing line amounts to 63 million dinars (MD) until 2028, including 10 MD for the year 2025.
She went on to say that the amount allocated for 2025 has been increased from 5 to 10 MD in order to meet demand and allow a greater number of farmers to benefit from this measure. The government will pay the interest on the loans granted by the banks, she added.
