Algeria's Minister of Finance, Mohamed Lamine Labo, presented the 2027 finance bill to the National People's Assembly on Monday. The bill includes a medium-term economic and budgetary framework, projecting a 4.2% GDP growth rate in 2027, 4.1% in 2028, and 4.7% in 2029. The growth is expected to be driven primarily by the performance of non-hydrocarbon sectors.
The finance bill sets a reference price for a barrel of crude oil at $60 and a market price at $70. The exchange rate is expected to be 131 Algerian dinars per US dollar. The inflation rate is targeted at 4%. The bill also projects a 5% growth rate for non-hydrocarbon GDP, reaching 47.492 billion Algerian dinars in 2027, 52.742 billion dinars in 2028, and 58.194 billion dinars in 2029.
According to the bill, the growth rates for various sectors in 2027 are expected to be: 6% for industry, 5.5% for electricity and gas production and distribution, 5.2% for construction, 5% for services, 4.7% for agriculture, and -1% for hydrocarbons. The bill aims to maintain economic stability and support productive investment.
The state's budget for 2027 is expected to reach 17.882 trillion Algerian dinars, with a growth rate of 2.5% per annum from 2027 to 2029. The bill projects total budget revenues of 9.251 trillion Algerian dinars in 2027, 9.473 trillion dinars in 2028, and 10.010 trillion dinars in 2029.
The petroleum revenue is expected to be 2.652 trillion Algerian dinars in 2027. Non-petroleum revenues are projected to reach 6.598 trillion Algerian dinars, representing a 7.7% annual growth rate from 2027 to 2029. This growth is attributed to improved economic activity, modernization of tax administration, and enhanced collection operations.
The 2027 budget allocations include 6.180 trillion Algerian dinars for transfer expenses, 4.578 trillion dinars for user expenses, 3.725 trillion dinars for investment expenses, 2.060 trillion dinars for unforeseen expenses, 479 billion dinars for service expenses, and 21.3 billion dinars for state financial operations.
The finance bill aims to promote economic diversification and support investment in non-hydrocarbon sectors. The government's efforts to maintain economic stability and stimulate growth are crucial for Algeria's economic development. The bill's projections and allocations will be subject to review and approval by the National People's Assembly.
Key points
- Algeria's 2027 finance bill projects a 4.2% GDP growth rate, driven by non-hydrocarbon sectors.
- The bill sets a reference price for a barrel of crude oil at $60 and targets an inflation rate of 4%.
- The state's budget for 2027 is expected to reach 17.882 trillion Algerian dinars, with a growth rate of 2.5% per annum from 2027 to 2029.
