Algeria's Finance Minister, Mohamed Lamine Labo, presented the 2027 finance bill to the National People's Assembly, outlining measures to support the national economy, stimulate diversification, and maintain citizens' purchasing power. The bill was presented during a public session chaired by Assembly President, Khélida Boudfodj, with several government members in attendance. Labo stated that the bill was prepared in a challenging international context marked by geopolitical uncertainty, inflationary pressures, and energy market fluctuations.
The proposed measures aim to encourage productive investment, enhance economic diversification, and preserve citizens' purchasing power. The bill also seeks to expand the tax base, mobilize resources, simplify procedures, and accelerate the modernization of administration. Additionally, it aims to promote tax compliance, transparency, and combat tax evasion and fraud. Other measures include customs-related initiatives and those related to state assets.
To encourage investment, the bill proposes reorganizing the institutional framework governing investment by establishing three bodies responsible for investment: the National Agency for Investment Promotion, the National Investment Council, and the Single Window for Investment. This move aims to streamline investment procedures and provide a more favorable business environment.
The bill also proposes simplifying procedures and accelerating the modernization of administration by introducing mandatory remote declaration and payment for taxpayers subject to the single flat-rate tax. Furthermore, it suggests extending the exemption from value-added tax on imports and sales of dry legumes, fresh fruits and vegetables, eggs, and locally produced poultry until December 31, 2029.
According to the bill, Algeria's economic growth is expected to reach 4.2% in 2027, with budget revenues projected to exceed 9,251.1 billion Algerian dinars (DZD) and budget expenditures expected to reach 17,251.6 billion DZD in terms of commitment and 17,882.6 billion DZD in terms of payment appropriations. The bill also allocates 4,356.64 billion DZD for transfer expenditures, primarily directed towards subsidies for widely consumed products.
For 2026, the economic growth rate is expected to reach 4.3%, driven by the good performance of economic activity outside the hydrocarbons sector, which is expected to record 4.8% growth, and a rebound in the hydrocarbons sector, expected to achieve 1% growth. The GDP is expected to reach over 48,723 billion DZD in 2026.
The bill's projections for 2026 indicate an improvement in budget balances, resulting from expected growth in budget revenues and stable expenditure levels. Budget revenues are expected to reach over 8,611 billion DZD, while expenditures are expected to exceed 17,636 billion DZD, remaining within the limits of the appropriations opened under the 2026 finance law.
Key points
- The 2027 finance bill aims to support Algeria's economy and improve living standards through measures such as encouraging investment, promoting economic diversification, and preserving citizens' purchasing power.
