USAID’s Fiscal Reform for a Strong Tunisia (FIRST) Supports the Ministry of Finance capacity to use data for analysis of proposed fiscal reforms

FIRST trains the General Direction for Resources and Equilibrium (DGRE) in using the Computable General Equilibrium (CGE) model.

FIRST project is supporting the Tunisian Ministry of Finance (MoF) in enhancing its capacity to develop and deliver tax policy and other fiscal reforms.

As such, the project has been training the MoF’s DGRE staff in using actual and reliable economic data to estimate how the Tunisian economy might react to changes in policy. The trainings are focused on programming a Computable General Equilibrium (CGE) model with reliable data, in order to forecast changes in the government budget, based on economic variables. CGE models are a tool used by decision and policy makers to implement financial and fiscal policies based on information that has been efficiently simulated and calcuIated.

In addition to providing training on the general equilibrium model, FIRST procured and delivered 5 laptop computers to DGRE staff, including GAMS software licences. GAMS is a software used by policy analysts and researchers to program and code CGE databases.

This activity aims to equip, train and improve the efficiency of  the DGRE unit, by fully using the capacity of the GAMS software for conducting analyses of the macroeconomic impacts of proposed tax and fiscal reforms. With these tools, DGRE staff will be able to provide the Ministry and policy makers with the technology and know-how to make informed decisions and implement better policies, based on strong and reliable information.

“We would like to take this opportunity to renew our deep thanks to the FIRST team for all the effort and commitment provided.”
                                                                     Ibtiseem Ben Algia, Director of Studies at DGRE