Tunisia plans to secure $3.7 billion in direct financing from its central bank in 2026 to cover a widening budget deficit, reflecting the government’s increasing reliance on domestic funding amid stalled external support. The move, detailed in a draft budget bill seen by Reuters, comes as the country grapples with persistent inflation, slow growth, and limited access to international credit markets.
The 2026 budget projects total financing needs of 27 billion Tunisian dinars, similar to current levels, with plans to diversify funding through the issuance of sukuk (Islamic bonds) worth about 7 billion dinars ($2.3 billion). The government also intends to introduce a 1 percent wealth tax on properties valued above 5 million dinars and gradually raise public and private sector wages over the next three years, Reuters reported.
Under the proposal, total government spending would rise from 59.8 billion to 63.5 billion dinars, driven by higher wage commitments and social support. Analysts caution that increased borrowing from the central bank could heighten inflationary pressures and challenge the bank’s policy independence, while also limiting credit availability for the private sector.
Despite these risks, officials argue the financing is critical to sustain essential services and stabilize the economy. With external funding constrained and negotiations with the International Monetary Fund yet to yield results, Tunisia’s reliance on domestic mechanisms may become the cornerstone of
