Khaberni - The Cabinet listened to a briefing by the Minister of Local Administration, Walid Al-Masri, on a plan to upgrade the municipal sector, which started at the beginning of last year and has resulted in reducing municipal debts, with the total debt decreasing from 630 million dinars in 2024 to 285 million dinars in 2025, following the exemption and settlement of financial obligations worth 345 million dinars.
Al-Masri explained that these results are part of a comprehensive reformative vision aimed at improving the financial and administrative conditions of the municipalities, enhancing the level of municipal services, and boosting environmental performance, focusing on principles of sustainability, efficiency, and expenditure rationalization. The plan included amending the Local Administration Law, addressing the accumulated debts of municipalities for various entities and institutions, while implementing financial sustainability policies based on enhancing revenues and controlling expenses, in addition to activating electronic financial and administrative systems in municipalities, and systems for planning, warehouses, and stores.
He noted that the remaining debt has been rescheduled over payment periods ranging from 5 to 15 years, considering the financial situations of each municipality, and included exemptions from debt interests, overdrafts, and contractor arrears, as well as obligations towards the Social Security Corporation, the National Electricity Company, and other entities. He pointed out that the revenues of municipalities saw growth during 2025, where they increased from 76 million dinars in 2024 to 109.9 million dinars, an increase of 33.9 million dinars or 45%, which positively reflected on the municipalities' ability to meet their financial obligations and improve their services.
In terms of services and tenders, the total value of referred and executed tenders increased in 2025 to 96.3 million dinars, compared to 74.6 million dinars in 2024.
He reviewed the results of evaluating the work of municipal committees over the past six months, which was based on reports from mystery shoppers, the Audit Bureau, field visits, and the level of revenue collection.
Regarding the Development Bank of Cities and Villages, he clarified that the liquidity of the bank increased to 4 million dinars in 2025, noting that the main measures taken included addressing and scheduling the debt and overdrafts of municipalities, valued at 303 million dinars for 79 municipalities, over payment periods ranging between 5 and 15 years, according to each municipality’s financial situation, with a gradually escalated interest rate from 0.5% to 2% instead of 7.5%, conditioned on preparing executable financial and administrative reform plans.
He elaborated that as part of the financial reform plan, it was ensured that the Development Bank of Cities and Villages had an annual cash flow, implementing a disciplined credit policy that considers the realities of municipalities and project priorities, where the cash flows amounted to 35 million dinars in the first year, with a cumulative value of 175 million dinars over 5 years.
Regarding environmental performance, he stated that the cleanliness level showed improvement, with 50 municipalities within the 70-100% classification range, and 42 municipalities within the 40-60% range.
