Latest news with #FinanceLaw
Zawya
4 days ago
- Business
- Zawya
Tunisia: Cabinet meeting reviews key directions for 2026 Finance Law and State Budget
Tunis – A Cabinet meeting was held on Wednesday at the Government Palace in Kasbah, chaired by Prime Minister Sara Zaafrani Zenzri, to review the main outlines of the 2026 Finance Law and State Budget. In her opening remarks, the Prime Minister emphasised that the 2026 Finance Law must embody a strategic vision, serving as a tool to implement public policies under the state's economic and social programme. This programme aims to balance economic growth and social justice, aligning with the 2026-2030 Development Plan, which will reflect the will of the people. According to a statement from the Prime Ministry, she stressed that national choices are the only way to meet people's expectations, particularly by revising a number of laws relating to taxation and social justice, and by reopening public sector recruitment to address unemployment. The Prime Minister underscored the need for a new approach in drafting the 2026 Finance Law, one that moves beyond temporary fixes and half-measures. Instead, it should reflect the state's vision which consists in strengthening the foundations of the social state, while ensuring fiscal justice and social equity, boosting purchasing power, balancing economic growth with social justice and increasing the rate of economic growth by stimulating investment and establishing an appropriate social and economic framework for the construction and building phase. She also highlighted that all state's economic policies must adhere to core principles, including preserving national sovereignty and independent decision-making, self-reliance. At the same time, the state must remain open to Tunisia's regional and international environment in order to support and consolidate national decisions regarding the social role of the state and the promotion of local, regional, and territorial development, she was quoted as saying in the same statement. The Cabinet meeting outlined the following priorities for the 2026 budget: - Strengthening the Social State through expanding support for vulnerable and low-income groups, while promoting economic empowerment mechanisms that benefit these groups in particular, in order to improve living conditions. - Developing the state's own resources by pursuing a policy of self-reliance, reducing tax evasion, integrating the informal economy, and diversifying sources of state budget financing, in line with a new vision. - Promoting employment, improving living standards and strengthening the social protection system, while valuing human capital. This can be achieved by developing social policies to promote social justice, adopting measures to maintain the purchasing power of vulnerable and middle-income groups and providing greater social support for vulnerable groups, as well as guidance and support for business start-ups. - Implementing measures to improve income, strengthen economic and social integration mechanisms, create jobs, provide decent working conditions, eliminate precarious employment, facilitate access to housing, strengthen social cohesion, improve all public services and develop the social security and coverage system. - Promoting investment within the framework of a comprehensive approach based on liberalising entrepreneurship and improving the business climate so that public investment drives private investment and raises the pace of economic growth. - Investing in regional development programmes based on constitutional principles will drive development in the regions. This approach will contribute to the formulation of regional priorities, starting with programme and project proposals at the local council level and progressing through the regional and district councils to the national level. On this basis, the development plan for the 2026–30 period will be prepared. Development-related expenditure is a key lever for stimulating economic growth and attracting private investment, particularly at regional and district levels. - Accelerating interconnectivity and making the digital transformation of the administration a tool for modernising the administration, ensuring transparency, facilitating transactions and opening up prospects for supporting the digital economy. During the Cabinet meeting, it was emphasised that this draft is based on a set of principles aimed at strengthening the pillars of the social state, maintaining financial balance, and improving the efficiency of public performance in various sectors. The most important basic principles include simplifying procedures for Tunisians abroad, supporting the financing of start-ups and communitarian enterprises and financing companies active in the green, blue and circular economy sectors.
Morocco World
01-05-2025
- Business
- Morocco World
Morocco Reports Budget Surplus of MAD 5.9 Billion for First Quarter 2025
Rabat — Morocco's General Treasury shows positive financial results as the country marks the first three months of 2025 with a budget surplus. The country's finances remain strong despite global economic challenges. Strong budget performance Morocco's General Treasury reported a positive budget balance of MAD 5.9 billion (about $590 million) at the end of March 2025. This surplus comes from ordinary resources of MAD 184.1 billion ($19.8 billion) against expenses of MAD 178.2 billion ($19.14 billion). When adding loan revenues of MAD 29.2 billion ($3.12 billion) and accounting for debt payments of MAD 12.1 billion ($1.29 billion), Morocco's budget shows an even larger surplus of MAD 23.1 billion ($2.47 billion). Government revenue sources The government's total resources reached MAD 213.4 billion ($22,91 billion) during the first quarter of 2025. This represents 32.4% of what was planned into the Finance Law for the entire year. Ordinary revenues make up the largest portion at 53.4% of total resources. Special treasury accounts contribute 32.6%, while medium and long-term loans account for 13.7%. Independently managed state services provide the remaining 0.3%. The Treasury also noted that at the end of December 2023, businesses were still waiting for 32.9 billion dirhams in VAT refunds and 4.7 billion dirhams in corporate tax returns. Expenditure breakdown Looking at the larger picture, total government spending reached MAD 190.3 billion ($20,45 billion), or 26.4% of what was planned for the year. Regular budget expenses formed the majority of spending at 54.2%. Special treasury account payments represented 24.6% of the total, while investment spending accounted for 14.7%. Debt payments make up the remaining 6.4% of government expenditures. Outlook for 2025 These figures suggest Morocco's government finances remain on a solid footing as the country moves through 2025. The first-quarter performance indicates effective financial management and gives the government flexibility to address national priorities for the remainder of the year. Tags: Budget surplusEnconomyMoroccoTGR
African Manager
05-03-2025
- Business
- African Manager
Tunisia's public debt reaches 135 billion dinars in 2024
According to the provisional results of the state budget execution at the end of December 2024, public debt has reached 135 billion dinars. Compared to the end of 2023, public debt increased by 8.3 billion dinars, equivalent to a rise of 6.6%, representing a slower growth rate than nominal GDP. As a result, the public debt-to-GDP ratio decreased from 84.6% in 2023 to 81.2% at the end of December 2024. It is worth noting that the 2024 Finance Law projected public debt to reach 139.9 billion dinars by the end of the year. Between 2023 and 2024, domestic public debt increased by 12.9 billion dinars (+21.5%), reaching 72.7 billion dinars, while external public debt decreased by 4.5 billion dinars (-6.8%) to 62.3 billion dinars. The share of domestic public debt in total public debt rose from 47.2% at the end of 2023 to 53.8% as of December 31, 2024. Conversely, the share of external public debt decreased from 52.8% to 46.2%. It is noteworthy that 55.8% of external public debt is denominated in euros and 31.2% in dollars. Public debt owed to the international financial market represents 12.75%, compared to 21.95% in bilateral debt and 65.3% in multilateral debt. The decline in the proportion of external public debt is attributed to raising external funds below the budgeted amounts. As of December 31, 2024, the state mobilized external borrowings of 3.5 billion dinars, compared to the 16.4 billion dinars planned in the 2024 Finance Law.
African Manager
28-02-2025
- Business
- African Manager
Tunisia: External credits granted to state down 40% to TND 3.5bn in 2024
The year 2024 was exceptionally 'poor' in terms of external financing for the administration, totaling only 3.47 billion dinars, compared to the budgeted amount of 16.445 billion dinars outlined in the 2024 Finance Law. According to the provisional results of the state budget execution at the end of December 2024, the external credits granted to the state last year included: – 2.129 billion dinars in the form of external loans allocated to state projects. – 953.1 million dinars in the form of external loans reallocated to public enterprises. – 387.5 million dinars in budgetary support (from the World Bank for 146.5 million dinars, the French Development Agency (AFD) for 14.1 million dinars, the Arab Monetary Fund for 59 million dinars, and Italy for 168 million dinars). In fact, Tunisia mobilized external financing in 2024 amounting to only 21.1% of the external borrowing planned in the 2024 budget, marking a 40% decline compared to 2023 (5.825 billion dinars). In contrast, domestic borrowing surged in 2024, reaching 23.203 billion dinars—double the amount budgeted in the Finance Law (11.743 billion dinars) and a 75% increase compared to 2023.
Morocco World
12-02-2025
- Business
- Morocco World
Morocco's Fiscal Reform Pushes Tax Revenues to $30 Billion
Rabat – Morocco's fiscal reform has generated a consistent increase in tax revenues, jumping from MAD 199 billion ($20 billion) in 2020 to MAD 300 billion ($30 billion) in 2024. Fouzi Lekjaa, Delegate Minister for Budget, presented the statistics on Tuesday to the House of Councillors. The upward trend has so far been maintained, Lekjaa said, detailing that the tax revenues amounted to MAD 100 billion ($10 billion) at the end of last month and mirrored over an 11% yearly average increase. He also indicated that the tax burden fell from 23% to below 21.2%, referring to the change to robust economic activity and initiatives detailed in conjunction with Parliament. Corporate tax revenues increased from MAD 51 billion ($5 billion) in 2020 to MAD 77 billion ($7.7 billion) in 2024. Receipts from value-added tax (VAT) increased by 62%, moving from MAD 90.5 billion ($9 billion) to MAD 147 billion ($14.7 billion). Personal income tax revenues also recorded an increase, from MAD 42 billion ($4.2 billion) to more than MAD 64 billion ($6.4 billion). Lekjaa invoked the tax amnesty scheme that brought in declarations of MAD 125 billion ($12.5 billion), terming it as a sign of public confidence. A 5% tax under the Finance Law should bring an additional MAD 6 billion ($600 million) to the state coffers. He noted that greater trust between citizens and the tax administration would increase Morocco's GDP by more than 10 points and open the door to new investments. Figures from January 2025 confirm the optimistic momentum, with tax revenues standing at MAD 2.46 billion ($246 million) more than in the same month of 2024, at MAD 27.14 billion ($2.7 billion). Lekjaa said he is expecting further growth until the end of March. The government's social reform program has to date required MAD 100 billion ($10 billion) in spending, he said, concluding that this underlined the need for diversification of funding sources in a bid to reduce the budget deficit to 3% by the end of the government term.
