The Social Dimension in Tunisian Budgetary Discourse: A Critical Analysis
By Skander SALLEMI, Tax Advisor
The social dimension has become a central aspect of Tunisian budgetary discourse. However, the lack of transparent indicators, poor execution of voted programs, and erosion of purchasing power raise questions about the consistency between ambition and reality. A credible social state requires transparency, measurement, and accountability.
Measures that Burden Purchasing Power
Since 2014, the social argument has become indispensable in Tunisian finance laws. Every year, promises are made about social justice, protection of the most vulnerable, and strengthening national solidarity. However, behind this rhetoric, a reality imposes itself: the purchasing power of taxpayers has continued to deteriorate due to fiscal measures presented as social.
- Article 53 of the 2018 finance law introduced a social solidarity contribution to benefit social security funds, which was significantly strengthened by the 2023 finance law before being alleviated for employees.
- The 2025 finance law introduces a contribution for employees and employers to finance insurance against economic dismissal.
- Revisions to VAT, the introduction of the carbon tax, and the increase in stamp duty have aggravated the pressure on household purchasing power.
Can a finance law be considered "social" when it reduces the available income of taxpayers, including the most modest ones?
2017: The Fiscal Turning Point that Trapped Middle-Income Earners
Presented as social progress, the 2017 tax reform on personal income raised the exempted income bracket. However, two measures neutralized this effort:
- Tax rates applied to other income brackets were significantly increased.
- Professional expenses deductible at 10% of taxable income were capped at 2,000 dinars.
As a result, middle classes paid more, and even employees earning the minimum wage (Smig) are now subject to income tax.
In ten years, the Smig has increased from 320 dinars to 528.320 dinars (+65%), without adapting the tax bracket or deductions. The mechanical effect is clear: each salary increase is partly absorbed by taxes, in a context where inflation exceeds salary increases.
Wealth Tax: Each Social Tax Raises the Same Question
Introduced in 2023 and expanded in the 2026 finance law project, the wealth tax is intended to serve as a redistribution tool. However, no figures are published on its revenue, and no information is provided on the allocation of receipts. It becomes difficult to evaluate the effectiveness of an instrument whose state does not document either the product or the use.
The Social State Requires Accountability
Social policy cannot be a slogan in a finance law. It relies on concrete foundations:
- Transparency of figures
- Real equity of fiscal effort
- Rigorous evaluation of implemented devices
- Administrative capacity to execute adopted programs
- Regular adjustment of tax brackets to preserve purchasing power
Otherwise, the social dimension of the budget becomes an argument for additional fiscal levies, rather than a public policy based on efficiency and justice.
Problem of Implementing Social Programs
A major contradiction appears between social discourse, fiscal pressure, and the reality of public finances. The latest report from the Court of Auditors highlights under-execution of public expenditures, showing that the state does not fully commit the resources it plans.
At the same time, two social devices, adopted in the 2025 finance law, namely the Fund for the Protection of Agricultural Workers and insurance against job loss for economic reasons, have not been implemented to date. This observation illustrates the gap between the announcement of social policies and their concrete realization. The question becomes legitimate: is the problem budgetary, administrative, or governance-related? The political will is displayed, but execution is lacking. And in the absence of public data and monitoring indicators, it is impossible to measure the impact, adjust the devices, or ensure their credibility.
S.S.
Note: The opinion expressed in this article is the sole responsibility of its author and represents a personal point of view.
