Executive summary
Tunisian Economic indicators call for greater dynamism in monitoring economic policy. Indeed, GDP growth would slow down in 2019E to 1.4% from 2.5% a year earlier. The fiscal deficit, despite its improvement, remains considerable with the 2019 forecast of 3.5% of GDP against 4.8% in 2018. The current account deficit of the balance of payments is expected to be below 10%** in 2019E compared to 11.2% a year ago.
The Finance Act Draft (FAD 2020) is indeed a real opportunity to implement new corrective measures for this downward growth trajectory, and to consolidate the fiscal balance while providing the necessary support measures in order to restore a normative level for the balance of payments.
Thus, the expectations of the economic actors are multiple. The FAD represents a chance for fiscal policy to introduce measures capable to spur not only economic dynamism, but even improve the climate of confidence.
The analysis of the FAD 2020 content suggests that this text is adapted to a transition period. This project contrasts with the FA 2019 which had carried out an accurate diagnosis of the economic situation in Tunisia, targeted some of the country’s main economic issues and proposed measures within the available leeway.
The main focus of this Act is the consolidation of fiscal balances with the ambition of achieving a “sustainable” level of fiscal deficit of 3% of GDP and avoiding any new taxes aiming to support public finances
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