TUNIS: Tunisia’s government plans to increase fuel and electricity prices, freeze public sector pay and impose new taxes next year in moves that could anger the powerful labor union, a budget plan seen by Reuters on Tuesday showed.
The measures seek to address a looming crisis in public finances, with the deficit and debt spiralling during the pandemic and political problems hindering prospects for an international rescue package.
The budget aims to reduce the deficit to 7.7 percent next year from 8.3 percent in 2021, though growth in the tourism-dependent economy is forecast to slow to 2.6 percent from 2.8 percent this year and inflation to rise to 7 percent from 5.7 percent this year.
The proposal would require financing of 23 billion dinars ($8 billion) compared to 21 billion dinars this year, the budget document showed.
President Kais Saied, who seized most powers in July in moves his foes call a coup, can approve the budget plan without recourse to the elected parliament that he has suspended.
The government envisages its measures, which include raising tax on tobacco, will boost revenue by around 3.5 billion dinars ($1.22 billion).
Previous efforts to reform Tunisia’s public finances have run up against opposition from the powerful labor union, which opposes any cuts that would impact workers or the poor and wants to prioritize fighting corruption.
Ratings agencies have downgraded Tunisia, and Central Bank Governor Marouane Abassi has warned it could face a Venezuela-style scenario if it attempts to finance its deficit and debt repayments internally.
The government of Najla Bouden, who was appointed in September, has initiated talks with the International Monetary Fund (IMF).
During previous talks before Saied’s July intervention, the fund said Tunisia needed to agree on a package of credible economic reforms in return for assistance, and lenders have said Saied must return to a normal, inclusive constitutional order.
Last week, more than four months after he seized power, Saied announced a political roadmap including a referendum on a new constitution and fresh parliamentary elections. It is not clear how far that will assuage lenders’ concerns.
Meanwhile, internal opposition to some of his moves has solidified among political parties and the labor union and could be expanded by a budget that freezes pay, raises taxes and cuts subsidies.
Tunisia to cut subsidies, raise taxes and freeze pay in 2022
https://arab.news/bz792
Tunisia to cut subsidies, raise taxes and freeze pay in 2022
- The measures seek to address a looming crisis in public finances
- The budget aims to reduce the deficit to 7.7% next year from 8.3% in 2021
First responders enter devastated Aleppo neighborhood after days of deadly fighting
- The US-backed SDF, which have played a key role in combating the Daesh group in large swaths of eastern Syria, are the largest force yet to be absorbed into Syria’s national army
ALEPPO, Syria: First responders on Sunday entered a contested neighborhood in Syria’ s northern city of Aleppo after days of deadly clashes between government forces and Kurdish-led forces. Syrian state media said the military was deployed in large numbers.
The clashes broke out Tuesday in the predominantly Kurdish neighborhoods of Sheikh Maqsoud, Achrafieh and Bani Zaid after the government and the Syrian Democratic Forces, the main Kurdish-led force in the country, failed to make progress on how to merge the SDF into the national army. Security forces captured Achrafieh and Bani Zaid.
The fighting between the two sides was the most intense since the fall of then-President Bashar Assad to insurgents in December 2024. At least 23 people were killed in five days of clashes and more than 140,000 were displaced amid shelling and drone strikes.
The US-backed SDF, which have played a key role in combating the Daesh group in large swaths of eastern Syria, are the largest force yet to be absorbed into Syria’s national army. Some of the factions that make up the army, however, were previously Turkish-backed insurgent groups that have a long history of clashing with Kurdish forces.
The Kurdish fighters have now evacuated from the Sheikh Maqsoud neighborhood to northeastern Syria, which is under the control of the SDF. However, they said in a statement they will continue to fight now that the wounded and civilians have been evacuated, in what they called a “partial ceasefire.”
The neighborhood appeared calm Sunday. The United Nations said it was trying to dispatch more convoys to the neighborhoods with food, fuel, blankets and other urgent supplies.
Government security forces brought journalists to tour the devastated area, showing them the damaged Khalid Al-Fajer Hospital and a military position belonging to the SDF’s security forces that government forces had targeted.
The SDF statement accused the government of targeting the hospital “dozens of times” before patients were evacuated. Damascus accused the Kurdish-led group of using the hospital and other civilian facilities as military positions.
On one street, Syrian Red Crescent first responders spoke to a resident surrounded by charred cars and badly damaged residential buildings.
Some residents told The Associated Press that SDF forces did not allow their cars through checkpoints to leave.
“We lived a night of horror. I still cannot believe that I am right here standing on my own two feet,” said Ahmad Shaikho. “So far the situation has been calm. There hasn’t been any gunfire.”
Syrian Civil Defense first responders have been disarming improvised mines that they say were left by the Kurdish forces as booby traps.
Residents who fled are not being allowed back into the neighborhood until all the mines are cleared. Some were reminded of the displacement during Syria’s long civil war.
“I want to go back to my home, I beg you,” said Hoda Alnasiri.
