Tunisia announces measures to cut public sector wages to unlock IMF loan
The Tunisian government has proposed urgent measures to cut public sector wages in a bid to unlock an International Monetary Fund (IMF) loan, Tunis Afrique Presse reported.
The measures included limiting the percentage of promotions, freezing vacancies and re-employing available human resources, according to a government statement issued Monday on the preparation of the state budget for 2023.
Tunisia’s public sector wage expenditure reached a record high of 15.6 percent of GDP in 2022, up from 10 percent in 2010, leading to limited fiscal capacity for public investment, Xinhua news agency reported.
Tunisia is requesting a loan of 4 billion dollars from the IMF to avoid bankruptcy. To this end, the North African country is required to implement far-reaching reforms, including freezing wages, reducing energy and food subsidies and privatizing some public companies.
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