The draft finance law for the year 2025 (PLF 2025) reveals a colossal budget that the government plans to adopt to improve the living conditions of Algerians and encourage investment.
Expenditure will thus reach 16,794.6 billion dinars, an increase of 9.9% compared to the forecasts of the 2024 finance law. The macroeconomic and budgetary framework as well as the estimates for 2026 and 2027 take into account the evolution of the national context and the international economic situation, particularly with regard to the supply and demand for energy products.
Thus, this bill is based on a reference price of $60 per barrel of crude oil, and an estimate of $70 for the market price of a barrel of oil. Hydrocarbon exports are expected to increase by 1.9% in 2025, then decrease by 0.9% in 2026 and by 5.8% in 2027.
The budget expenditure for 2025 is estimated at 16,794.61 billion dinars, and it is then expected to reach 17,948.64 billion dinars in 2026, before falling to 17,387.53 billion dinars in 2027, marking the adoption of the largest budget in the history of independent Algeria.
Economic growth is expected to reach 4.5% between 2025 and 2026, but slow to 3.7% in 2027 due to the decline in growth in the hydrocarbon sector, which grew by 2.4% in 2025, and will remain stable in 2026, before falling by 2.6% in 2027. Excluding hydrocarbons, average economic growth will be 5% for the period 2025-2027, with 5% in 2025, 5.3% in 2026, and 4.8% in 2027.
The gross domestic product (GDP) will reach $278.71 billion in 2025, then $300.71 billion in 2026, and $308.13 billion in 2027. The balance of payments will go from a surplus of $1.17 billion in 2025 to a deficit of $0.54 billion in 2026, due to the expected deficit in services and income, before balancing in 2027. However, the trade balance will record surpluses during the period 2025-2027, with $4.83 billion in 2025, $3.57 billion in 2026, and $3.35 billion in 2027.
More than 48,000 billion DA to cover several sectors
Regarding salaries, the PLF provides that personnel expenses in 2025 will amount to 4,445.78 billion dinars, representing 26.5% of payment appropriations for this year, with an increase of 289.74 billion dinars compared to 2024, an increase of 7%.
These credits cover the revision of special statuses in the sectors of national education, health, religious affairs and higher education, for an amount of 484 billion dinars, as well as the coverage of the financial impacts linked to the creation of positions decided by the public authorities in 2024, in particular in the sectors of education, agriculture, national solidarity, and religious affairs, for a value
In addition, 69,525 new positions will be created, including 3,980 in public administrative institutions, with a total cost of 15.35 billion dinars. The total number of positions to be filled in 2025, including new jobs and the replacement of vacant positions.
As for the payroll for the year 2025, it is estimated at 5,843 billion dinars, including 1,276 billion dinars for public administrative institutions. This represents 34.79% of the state budget, recording an increase of 598 billion dinars (11.4%) compared to 2024 when the payroll amounts to 5,245 billion dinars.
