Tunisian central bank forces state to cut spending plans
Prime minister abandons plan to widen deficit to 14% of GDP after governor refuses to finance it
The Tunisian government withdrew plans for a major spending increase on November 2, days after the central bank governor publicly refused to support it.
Tunisian prime minister Hichem Mechichi put forward a draft budget in mid-October that would have seen the fiscal deficit reach a record 14% of GDP. Mechichi and other senior officials, including finance minister Ali Kooli, said they expected the central bank to finance the deficit by buying government bonds.
But on October 28, governor
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