Tunisia Budget Strain from Employee Costs

Tunisia faces significant financial challenges due to the increasing number of public sector employees, which is expected to reach around 693,000 by 2027, up from 435,000 in 2010. This growth began in 2012 following the revolution, with a record 20% spike in appointments and periods of slowdown despite efforts to curb growth, such as reducing hiring in 2021. Salary expenses account for over 13% of the gross domestic product and consume a large budget of 68.8 billion dinars, leading to increased taxes on citizens to fund these jobs—a vicious cycle that impacts the Tunisian economy.

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