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Complementary Finance Act: 11% increase in State Budget

Published the:  13/06/2011

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June 13, 2011 - The State Budget for 2011 was set in the complementary Finance Act at 21,330 million Tunisian dinars (MTD), i.e. up 11% compared with the Finance Act Bill adopted last December 2010 (19,192 MTD).
The Complementary Finance Bill which was submitted to the Cabinet Meeting of last June 7, aims to readjust State Budget Resources, so as to take into consideration the financial impact of the exceptional measures taken after the Revolution of January 14, 2011.
State Budget Resources: The General State Budget Resources for 2011 comes at 70% from own resources (14,961 MTD) and tax and non-tax resources.
Loan resources are estimated at 5,152 MTD, while those of special treasury funds amount to 1,217 MTD (6% of the budget).
State Budget Expenses: estimated at 58% of the State Budget, management spending still has the lion's share in State spending.
Management expenses are set at 12,518 MTD compared with 10,732 MTD planned in the Finance Act for 2011, i.e 16.6% increase.
They are distributed as follows: public salary expenditures (7,642.777 MTD), service equipment (842.828 MTD), public interventions (3,648.059 MTD) and unexpected expenditures (384.636 MTD).
Estimated at 19.6% of the State Budget, development spending (4.181 MTD) is down 13% compared to the amount of 4,818 MTD set in the 2011 Finance Law.
Development expenses are distributed as follows: Direct investments (1,566.526 MTD), public financing (1,419.980 MTD), urgent development expenditure (465.399 MTD) and development expenses related to invested foreign resources (729.950 MTD).
Under the draft decree of the Complementary Finance Act for 2011, the expenditure devoted to the payment of public debt servicing remained practically at the level set by the Finance Law of December 2010, i.e. 3.414 MTD.
Finance Minister Jalloul Ayed said during a televised debate that "Tunisia must pay its debts to preserve its good reputation in international financial markets."
The country, which is preparing a major restructuring of its economy, "will need urgently external borrowing," he said.
Estimated at 43%, the borrowing rate remains "reasonable" for Tunisia and "has no impact on its major economic balances," said the Finance Minister.