Summary:

On 13 January 2025, Tunisian President Kais Saied ordered the launch of a sweeping review of “non-useful [government] institutions” during a ministerial meeting with Prime Minister Kamal Madouri.  

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President Saied stated that many government institutions are a burden to the state budget and do not fulfill their intended objectives. He added that service to citizens should be prioritized over expanding government institutions.  

The President’s statements also indicated a vision for directing funds from inefficient or ineffective institutions toward “implementing radical solutions to resolve poverty and exclusion.” 

Days later, President Saied held a meeting with the Central Bank Governor in which he emphasized the need for public and private banks to work alongside the Central Bank in a national effort to boost investments and financial transactions.  

Outlook: 

Plans to potentially make cuts to public institutions mark a new evolution in the President’s efforts to manage the government and its unwieldy budget. Previous statements focused more on replacing officials, addressing corruption, and urging more responsible, citizen-oriented work. However, these new statements point to a potential acknowledgement that cuts to the government wage and operating budget will be necessary. 

With the election completed, the administration is now free to refocus on pressing issues, prominent amongst them being pressure on the Tunisian economy. To achieve a sustainable balance, the government has already adopted new tax rates on specific enterprises and approved loans from internal and external creditors.  

The consolidation, or restructuring, of public institutions is aligned with recommendations issued by the International Monetary Fund (IMF) as prerequisite to a loan deal. However, President Kais Said’s decision is more likely driven by popular and investor demands to improve the accessibility and efficiency of administrative procedures. Some efforts on this front were announced previously, including the ongoing efforts to digitalize administrative services.  

The decision to omit certain institutions is also fulfilling a political aim to respond to popular critics of certain departments that many think were created to give jobs to previous regime’s supporters. 

The outcome of any review of public institutions remains uncertain, as merely merging organizations and their employees would not substantively change the wage burden on the government. Layoffs or terminations would very likely lead to protests and significant pushback from public sector labor unions.  

The review of public institutions marks a shift in policy, but whether substantive changes follow remains to be seen. 

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