Algeria government has only 1,000 billion DZ

The government expects that Algeria would end the next financial year by 1,797 billion DZ in its incomes fund. That means the fund lost about 85 percent of its capacity and efficiency. Its reserves went down while the national budget still has a deficit.

According to the 2016 financial act, the incomes fund is in a delicate situation. It was created by President Bouteflika in 2006 to Algeria’s external debt before it had become a legal mean to cover budget deficit.

The fund was affected by the oil crisis. It is expected to end 2015 by 3,081 billion DZ with a difference of 2,254 billion DZ with 2014.

The draft law deals with the danger on the incomes fund. The government relies on it to catch up its budget deficit.

Oil barrel price decreased by around 60 percent. Because of that, its reserves went down by 33 percent in a year as it spent 1,714 billion DZ in 2014-2015.

This situation shows that next year will be the worst year ever since the creation of the fund.

Because of that, the government is supposed to look for solutions before being forced into debt.