Public Sector's Economic Problems In Tunisia

Public Sector's economic problems in Tunisia. Introduction. Tunisia’s economic situation. Public Sector’s economic problems. Conclusion.

The table below, graph 2, represents all the data about the government spending. While comparing the numbers shown in the graph, we can see that the government spending started to increase drastically after Tunisia's Revolution day in 2011. However, the government spending invested a huge amounts of money not only to education, healthcare, but also to military forces and many other sectors. For a better understanding of where the government gets all the money, I will mention highly sponsored sectors with a few other indicators.

In the table below, we can see many different economic indexes from the year of 2017, 2015, 2013. Specifically, i chose these years because i wanted to see whether some major changes where made in different tax systems and wanted to analyze the changes in social security rate that could be influenced by the new changes and regulations. The major changes where made in a corporate tax rate system, as we can see, since the year of 2013, the percentage of the corporate tax rate increased by 5%, but the personal and sales tax rates remained the same. Interest rate also increased every year by 1%. However, the social security rate remained the same and was not very responsive to any changes in tax system or inflation.

The graph below, graph 3, represents the government’s debt to GDP, all of these data are represented in percentage from GDP. Tunisia’s government debt kept on growing since the year of 2011, mainly due to Tunisia’s Revolution day. However, there is also a close relationship between government spending and the government debt. As in a previous graphs, we saw that the government spending was also increasing drastically together with the government debt. /

Graph 3: Tunisia’s government debt to GDP ( in %)