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Algerian Prime Minister presented the draft of the General Budget for next year, and according to the new drafted budget, the public spending is expected to fall to the limit of 8500 billion dinars (75 billion dollars), compared to 8650 billion dinars this year (76.5 billion dollars), registering a decline of 1.5% or 150 billion dinars equivalent.
The Algerian Government has decided to postpone its decision to cut spending, further to the years 2020 and 2021, as these are the years set by the Algerian Government to achieve a financial balance. It also decided, early next year, to return to the policy of rationalization of expenditures and control of public spending, after a significant increase in expenditures this year, estimated to have rose by 21% compared to last year, according to estimates of the Ministry of Finance.
The Algerian Government's forecast for the coming years reflected in the 2019 budget, show the beginning of the decline in the Government flexibility, which had succeeded in managing the financial crisis since its beginning in mid-2014. This was a result of the exchange reserve, which stood at $190 billion four years ago, as well as freezing of imports, and lifting of tax pressure. It was also due to the reliance on unconventional financing mechanism, which allowed the Central Bank of Algeria to print more than 20 billion dollars and lend to the Treasury, since the end of last year.

Source: (Al-Arabi Al-Jadeed newspaper, Edited)