The Algerian government has approved a draft budget for next year, with a significant increase in public spending levels, the first in its history. Next year's budget exceeds $118.6 billion, with a deficit estimated at $13 billion.
While Algeria has been experiencing low oil prices since mid-2014, the new budget included maintaining the social expenditures to support many basic items, housing, education and medical services. Total expenditures are expected to be around $66 billion, while the revenues are likely to reach $52.6 billion.
The draft budget included new provisions aimed at promoting investment and encouraging the establishment of private institutions for young people. In the draft budget, the Government adopted a vision aimed at rationalizing the financial resources while maintaining a level of growth that preserves economic activity and employment.
The government also decided to maintain all forms of support directed to various social groups in order to protect the purchasing power of citizens and improve their living framework.
Perhaps the most difficult decision the government has made under tight financial resources is to buy the social ladder by keeping subsidies at current budget levels.
Source (Al-Arab - London Newspaper, Edited)
