Algerian Finance Minister, Mohamed Lamine Labo, presented the 2027 finance bill to the National People's Assembly's Finance and Budget Committee. The bill focuses on improving living standards, promoting human development, and continuing key infrastructure projects. Labo emphasized that the bill is based on cautious revenue estimates, considering national and international economic developments, and aims to balance macroeconomic stability with economic diversification requirements.
The 2027 finance bill allocates 2.414.15 billion Algerian dinars for social transfers, including 717.7 billion dinars for subsidies on essential goods such as grains, milk, and energy. The bill also earmarks 395.88 billion dinars for economic activity support, 80 billion dinars for interest rate subsidies, and 50 billion dinars for struggling economic institutions. Additionally, 100 billion dinars will be allocated to state-owned utility company Sonelgaz.
The bill prioritizes human development, with 3.014.4 billion dinars allocated to the health and education sectors. This includes the creation of 46,223 new teaching positions and 28,329 healthcare positions. The bill also provides for 180.4 billion dinars in program credits and 37.5 billion dinars in payment appropriations for public facilities accompanying residential areas.
The 2027 finance bill continues to focus on key infrastructure projects, with 62.4 billion dinars in program credits and 360.73 billion dinars in payment appropriations allocated for projects such as the Gara Djebilet iron mine, the integrated phosphate project, and the Algiers-Tamanrasset railway. The bill also aims to accelerate digital transformation, with 33.66 billion dinars in program credits and 24.82 billion dinars in payment appropriations for digitizing public services.
The bill proposes several legislative measures, including nine main axes and 14 measures to support investment and the national economy. It also includes seven measures to support purchasing power, 21 measures to expand the tax base, and five measures to simplify procedures and modernize administration.
According to the bill, Algeria's budget revenues are expected to reach 9.251.1 billion dinars in 2027, with non-oil revenues projected at 6.598.8 billion dinars. The bill also forecasts a 4.2% growth rate in GDP and an inflation rate of 4%. The government's budget expenditure is expected to reach 17.251.61 billion dinars in program credits and 17.882.65 billion dinars in payment appropriations.
The 2027 finance bill aims to achieve a balanced budget while addressing social and economic challenges. The government has emphasized its commitment to improving living standards, promoting economic growth, and continuing key infrastructure projects. The bill will be debated and voted on by the National People's Assembly in the coming weeks.
Key points
- The 2027 finance bill prioritizes improving living standards and continuing key infrastructure projects.
- The bill allocates 2.414.15 billion Algerian dinars for social transfers.
- The bill forecasts a 4.2% growth rate in GDP and an inflation rate of 4%.
