The Impact Of Public Spending On Some Macroeconomic Variables Of The Tunisian Economy For The Period (2004-2022)

Abstract

The research aims to analyses the impact of public spending on some of Tunisia's macroeconomic indicators for the period 2004-2022.

One of the main findings of the research was: the impact of public spending on some of Tunisia's macroeconomic indicators for the period between (2004-2022) to the effect that economic growth, the results demonstrated that an increase in public spending could lead to an increase in economic activity and growth, thanks to the promotion of public demand, employment and investment. public expenditure has had an impact on the rate of inflation in Tunisia's economy. Increased public spending has increased the demand for resources and services Public expenditure has improved employment opportunities and reduced unemployment rates in Tunisia's economy. Public spending on government projects creates new jobs and boosts economic activity and, finally, fiscal deficits and public debt. The Government has committed itself to carefully managing public expenditure to avoid significant fiscal deficits and increasing public debt. In the event of an uncontrolled increase in public spending, a fiscal deficit is required to be financed through increased public debt.

The study recommended: promoting public spending in Tunisia through increased public investment in infrastructure such as roads, ports and logistics systems as well as promoting government consumption, where increased public spending in areas such as education, health and social welfare can enhance government services to citizens public expenditure in Tunisia can contribute to the creation of new jobs through the financing of infrastructure projects and government services, as well as improving government revenues through increased public spending in Tunisia's economy s revenue flow can increase through value-added taxes and other taxes related to economic activities.