- TUNIS: Tunisia's budget deficit should rise to 6 percent of gross domestic product in 2012 from an estimated 4.5 percent for 2011 as the government plans to hike spending to reinvigorate an economy hurt by the effects of a revolution.
Tunisia's parliament has approved a budget of 22.94 billion dinars ($15.8 billion) for 2012, 7.5 percent above 2011, the official TAP news agency said.
The budget forecasts 4.5 percent GDP growth in 2012, well above the anaemic 0.2 percent estimated growth for 2011. The International Monetary Fund (IMF) expects real GDP growth of 3.9 percent in 2012 after a flat 2011. Tunisia's GDP came to around $45 billion in 2010.
The government allocated 5.2 billion dinars for development spending in 2012 far below the 13.5 billion budgeted for 2011.
"The current (account) deficit will be kept at a high level of 5.4 percent (of GDP) and the budget deficit of 2012 will be limited to 6 percent," TAP said.
The government also expects the economy to create 75,000 thousand jobs.