Budget deficit largely compensated by loans. The state assumes economic growth of 1.8% in 2023.
Tunis – The government aims to reduce the budget deficit from 7.7% in 2022 to 5.5% of GDP in 2023, equal to RSD 8.89 billion. This goal was Ministry of Economy and Planning in a report on the state budget for 2023 released on Friday (December 22, 2022).
This downward trend is mainly due to an increase in tax revenues of 12.5%, while expenditure on grants (subsidies) is expected to decrease by 26.4% and financial operations by 56.5%.
To compensate for the budget deficit, the state had to take out loans in the amount of RSD 24.1 billion, 66.2% of which came from abroad, mainly including loans to support the current budget (RSD 14.2 billion RSD).
In drafting the 2023 budget, a basic growth rate of the economy of 1.8% at constant prices is assumed.
Government expenditures will increase to RSD 46.424 billion in 2023, which means a 12.9% increase over the 2022 budget bill, as tax revenues will increase to RSD 40.536 billion, non-tax revenues to RSD 5.534 billion RSD and external grants are expected to increase to 354 million dinars.
Government debt service increased by 44.4% in 2022 as debt service spending increased.
