Pretoria:The country is expected to enjoy greater fiscal flexibility in 2027 compared to the past three years, primarily due to reduced debt repayment pressures, according to financial analyst Bassem Enneifer. According to Agence Tunis Afrique Presse, Enneifer noted that the development of the 2027 finance and budget laws follows a challenging year for Tunisia. The country faced significant pressures from regional geopolitical developments, which affected fuel prices and, consequently, increased the cost of hydrocarbon subsidies. The finance and budget laws for 2027 are part of a three-year budget cycle and align with the second year of Tunisia's five-year development plan (2026-2030). These laws aim to implement the programs and projects outlined in the development plan. Enneifer highlighted that the new finance law is being drafted after a difficult year for public finances, exacerbated by rising fuel costs due to Middle Eastern geopolitical tensions and the Russia-Ukraine conflict. He anticipates that s ubsidy expenses will likely exceed those projected in the 2026 state budget due to evolving global geostrategic conditions. Debt servicing in 2027 is expected to decrease compared to 2026, reaching levels similar to 2023, estimated at 20 billion dinars. The domestic debt service for the current year stands at approximately 6,460 million dinars, including various Treasury bonds and national loan repayments. External debt is projected to remain below 5 billion dinars next year. Enneifer predicts that Tunisia will benefit from a better fiscal margin next year, citing the decline in debt repayment pressures. However, budget forecasts will need to consider global developments, especially oil prices. He suggests adopting a higher Brent oil price in the 2027 budget assumptions than that of 2026. The analyst foresees an increase in subsidy volume in the upcoming budget, driven by the state's social priorities and sustained high prices of global commodities like wheat. This will likely lead to higher budgetary expe nses next year. Enneifer expects the Tunisian dinar's exchange rate to remain stable, with the budget deficit projected to drop below 6% next year, compared to the current year's 6.4% as per Fitch Ratings. Financing will primarily rely on domestic borrowing due to limited access to external funding, although any external loans obtained will focus on project financing. In terms of public investment, Enneifer anticipates improvements due to the government's commitment to implementing projects within the five-year development plan. He predicts no new taxes or fiscal measures in the 2027 finance law but suggests a potential shift in tax incentives toward promising sectors prioritized by the state.