Algerian Finance Minister Mohamed Lamine Lebbou has presented the country's 2027 budget plan, which aims to diversify public revenue, capture informal funds, and limit the impact of global inflation. The plan, which reflects the social character of the state, prioritizes protecting the purchasing power of low-income citizens while rationalizing public spending. Lebbou emphasized that the budget plan seeks to support the transition to a productive economy.
The 2027 budget plan includes measures to encourage productive investment, particularly in sectors outside of hydrocarbons, such as start-ups. Lebbou stated that these measures aim to broaden the economic and tax base without increasing tax rates. The plan also focuses on improving tax collection, strengthening tax administration, and combating tax evasion. These efforts are designed to support economic growth and accelerate the implementation of major economic projects.
Lebbou highlighted the importance of preserving the purchasing power of citizens and reducing inflationary pressures. The government plans to guarantee price stability, ensure the availability of essential products, and combat speculation and monopolies. This will be achieved through continued support for essential products and services, rehabilitation of wholesale markets, and strengthened market control.
The minister also discussed the policy of targeted support, which will be implemented once the digitization process is complete. This will ensure fairness and equality in the distribution of aid. Lebbou noted that the budget deficit is not unique to Algeria and that the country's public debt remains below the reference threshold for emerging markets.
Lebbou emphasized that 99% of Algeria's public debt is domestic, giving the country significant autonomy in making economic decisions. The treatment of the deficit will be based on a balanced approach, mobilizing financial resources, and rationalizing spending. The government is also exploring alternative financing tools, such as sovereign checks.
The minister provided examples of the measures included in the budget plan, such as the update of the land tax rate from 1% to 2.5%. Lebbou also mentioned that the 11 recently created wilayas have been allocated a total of 152 billion Algerian dinars in engagement authorizations and 132 billion dinars in payment credits.
The 2027 budget plan has received support from parliamentary groups, who have praised the measures to consolidate economic reforms and improve public spending efficiency. The president of the FLN parliamentary group, Rachid Othmane, welcomed the orientation towards continued economic reforms, while the president of the RND parliamentary group, Faid Soufiane, proposed a transition from supporting products to direct aid to households.
Key points
- The 2027 budget plan prioritizes diversifying public revenue, capturing informal funds, and mitigating the impact of global inflation.
- The plan includes measures to encourage productive investment, particularly in sectors outside of hydrocarbons, such as start-ups.
- The government aims to guarantee price stability, ensure the availability of essential products, and combat speculation and monopolies.
