Algeria to revise budget law to face financial crisis

Algeria’s finance ministry will have to revise budget law due to the critical financial situation. The government plans to have new margins to optimize public money expenses, Echorouk has learnt.

The finance minister Abderrahmane Benkhalfa notified Prime Minister Abdelmalek Sellal of the necessity of revising the law. The new text would be ready before June as it will be a reference for the next budget.

Benkhalfa also asked budget director at the ministry to take all the legislative steps in this regard.

According to the same sources, the minister considers the preparation of the new law is more than necessary to face the difficult financial conditions in Algeria.

Expanding budget and treasury deficit due to oil price collapse caused a headache. The Algerian oil barrel lost around $45 in 2015 compared to 2014. This led the government to declare an “emergency” state even in a soft way. Alternative solutions are currently limited as the industrial sector toll is decreasing and represents 3.2 percent only of GDP.

The same sources said the finance minister’s request comes as opposition parties responded to Article 62 of the 2016 Financial Act. The latter gives the minister the right to veto the transfer of budgets from a ministry to another if necessary.

Algeria’s hydrocarbon exports went down to $36 billion compared to $60 billion. Even exports out of hydrocarbons decreased to about $2 billion in 2015 compared to $3 billion in 2014.