Algerian President Abdelmadjid Tebboune signed on Sunday, November 24, 2024, the Finance Law for the year 2024, which has approved the largest budget in the country’s history.
On November 16, both the People’s National Assembly and the National Assembly (the two chambers of the Algerian Parliament) unanimously approved the country’s general budget project for the year 2025.
Algeria’s budget for 2025 includes:
- A historic deficit and the highest level of spending in the nation’s history, projecting a budget deficit for next year of 62 billion dollars.
- The budget is free from new fees and taxes.
- Numerous tax and customs exemptions for goods and products imported from abroad, as part of the government’s efforts to preserve citizens’ purchasing power.
Details of Algeria’s 2025 Budget
The Finance Law has approved a budget which is the largest in Algeria’s history, with total expenditures exceeding $128 billion; compared to $112 billion in 2024. This represents an increase in spending of about 10% from the previous year.
The Finance Ministry’s forecasts suggest that the country’s revenue for 2025 will reach 8,523 billion Algerian dinars (approximately $64 billion), which is a 4.5% increase compared to the current year’s revenues, with a 1.9% increase in oil and gas exports.
The state’s general budget has been prepared based on a reference oil price of $70 per barrel for the next three years.
The project also anticipates that Algeria’s budget deficit will worsen in the coming year, reaching an equivalent of 19.8% of the GDP, up from $43 billion in 2024.
The Algerian economy suffers from an excessive reliance on oil and gas revenues, which account for about 90% of the country’s foreign currency earnings.
According to the same document, economic growth is expected to reach 4.5% in 2025 and 2026, and 3.7% in 2027. This decline is justified by the government as being due to “the expected slowdown in growth of the hydrocarbons sector.”
