The Algerian Parliament Approves the 2021 Budget with a deficit of 22 billion dollars

  • Algiers, People's Democratic Republic of Algeria
  • 28 December 2020

The Algerian parliament approved the draft general budget bill for 2021, with a deficit of 2,700 billion dinars ($ 22 billion).

According to the general budget of Algeria, it is expected that the rate of growth of the economy during 2021 will reach about 4 percent, after expectations of a contraction of 4.6 percent, according to expectations at the end of the current year, while the rate of inflation for next year is expected to reach 4.5 percent.

According to the budget law, revenues will reach $ 43.31 billion in 2021, while expenditures will reach $ 65.95 billion, meaning a deficit of $ 22.6 billion, or 13.57 percent of GDP. The government expects foreign exchange reserves to decline to less than 46.8 billion dollars by the end of 2021, from 56 billion currently (covering 16.2 months of imports). Whereas, foreign exchange reserves are expected to rise from the year 2022, to 47.53 billion dollars, then 50.02 billion dollars in 2023.

It should be noted that the General Budget Law was approved based on a reference price for oil in the range of $ 40 a barrel, after it was reduced in the 2020 Budget Law to $ 30, under the pressure of the Corona pandemic. Note that Algeria's foreign exchange revenues have declined since 2014 due to successive oil shocks, from $ 60 billion to $ 33 billion in 2019, and expectations of $ 23 billion at the end of this year.

Source (Anadolu Agency, Edited)

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