Tunisia-Minister of Commerce: Subsidy expenditure constitutes 3.3% of GDP in 2022 [Video]

Trade Minister Fadhila Rabhi Ben Hamza said at a press conference held today that 1,000 administrative sanctions and 45,000 economic violations have been registered in the battle against monopoly and speculation. She added that the Competition Council under the ministry in question is handling 7 legal cases in this regard.

The speaker clarified that several measures have been adopted by the administration as part of the national reform program, including the digitization of the distribution channels of basic necessities, the improvement of access to markets and the protection of the power of purchase of the Tunisians. She recollected that several decree-laws have been drawn up with a view to adopting reforms within the agricultural sector.

“As part of the digitization of procedures, several applications have been made related to the economic control and distribution of basic products including flour, fodder and subsidized vegetable oil,” she said. The minister disclosed that subsidy expenditure will reach 4200 million dinars during the current year compared to 3200 million dinars last year. “Subsidy expenditure constitutes 3.3% of GDP, i.e. nearly half of the budget devoted to investment. It was consequently decided to revise the subsidy program and put in place a new strategy for the years 2023-2026 which will seek to direct subsidies towards vulnerable categories and needy families”  she says clarifying that grain and vegetable oil make up 87% of grant overhead. She returned to the repercussions of the Russian invasion of Ukraine, including the 30% to 50% upsurge in grain prices and the increase in international shipping rates, which were multiplied by 6.