Tunisia's Finance Committee chief proposes hiring freeze, salary increases

In Tunisia, a significant economic debate is unfolding as Maher Ktari, the President of the Finance Commission at the Assembly of People's Representatives, advocates for a bold fiscal strategy. His proposal to freeze public sector recruitment while simultaneously raising salaries aims to bolster purchasing power amidst challenging economic conditions. This approach, detailed in the draft state budget for 2027, reflects a delicate balancing act between fiscal responsibility and social welfare, a common theme in Tunisian economic policy discussions.

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The draft provides for limiting the growth of operating expenses to a maximum of 3% compared to 2026, reflecting a desire to contain budgetary balances in a constrained economic context.

Ktari's plan outlines a strict control over operating expenses, capping their growth at 3% compared to 2026, and a keen focus on managing the wage bill, which currently represents a substantial 16.1% of the Gross Domestic Product (GDP). This emphasis on fiscal consolidation is a recurring necessity for Tunisia, often driven by the demands of international financial institutions and the need to maintain macroeconomic stability. The proposal to limit ordinary promotions to 40% and to halt new hirings signals a pragmatic, albeit potentially unpopular, approach to streamlining public administration.

From the perspective of La Presse, a leading Tunisian publication, Ktari's proposals are presented not just as budgetary measures but as strategic interventions designed to address deep-seated economic issues. The argument that nearly 300,000 public sector jobs have been created since 2010 without a corresponding improvement in service quality is a critical point often raised by Tunisian commentators. This highlights a national conversation about efficiency and effectiveness within the state apparatus, a topic that resonates deeply with a population seeking tangible improvements in public services.

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It is not opportune to open new positions, recalling that nearly 300,000 jobs have been created in the public service since 2010, without notable improvement in the quality of services.

Furthermore, Ktari's agenda extends beyond personnel management. He champions strengthening pharmaceutical security, integrating the vast informal economy into the formal sector to bolster state resources, and promoting financial inclusion, with a particular role for the Postal Bank. The call for continued subsidies on essential goods like fuel, transport, and basic products, alongside a push for better targeting, reflects the ongoing challenge of balancing social protection with fiscal sustainability. This nuanced approach, acknowledging the need for support while addressing inefficiencies, is characteristic of Tunisia's complex socio-economic landscape.

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The government circular outlines a roadmap aimed at modernizing human resource management, limiting recruitment to priority positions and favoring internal mobility between administrations, in order to optimize existing staff.