President Bouteflika Warns Tebboune Government Against Resorting To Foreign Borrowing

date 2017/06/14 views 469 comments 0

icon-writer Samira Belamri /*/ English Version: Med.B.

President Abdelaziz Bouteflika on Wednesday ordered the new government to continue to be cautious in spending, rationalize expenditures and adhere to the budget of last year, avoid resorting entirely to foreign borrowing and control over the volume of imports of goods and services in order to preserve the country's drained reserves as non-traditional domestic finance being mobilized during fiscal transition years.

The government's plan of action was endorsed yesterday after discussion by the Council of Ministers thus officially conveying to debate before the People’s National Assembly in the next few days. 

The lower house of parliament completed the installation of its structures, which will enable it to determine the composition of the office and to schedule its first meeting to discuss the Government’s action plan.

According to the presidential statement, after the Council of Ministers approved the action plan of the Government of Premier Abdelmadjid Tebboune, the President of the Republic instructed the new Government, to efficiently face up to major challenges, especially through the activation of relevant economic reforms and to continue the smooth implementation of the budget rationalization policy approved last year so as to harness the public finances in the prospects of the year 2019.

The Government was required by the head of state to see to the promotion of non-traditional domestic funds that can be mobilized during the years of financial transition to avoid the effects of rationalization of spending in public investment programs.

President Abdelaziz Bouteflika also reiterated his call for the need to preserve the economic sovereignty of the country. He instructed the Government to avoid resorting to external borrowing and to control the volume of imports of goods and services in order to preserve the country's drained reserves, which means that the plummeting foreign reserves have reached a red line. 

The new economic growth plan approved last year by the Council of Ministers includes the necessary resort to implementing a set of in-depth reforms so as to improve the investment climate and ensure the modernization of the tax system, public banks and the financial market. 

The President of the Republic further called on the Government to work towards greater valuation of all resources and wealth, including traditional fossil fuels, non-traditional fossil fuels and renewable energies.

After recalling that the national choices in the field of social justice and national solidarity are irreversible, he instructed the Tebboune Government to work towards further rationalization of this social policy, especially by better targeting the beneficiaries of public assistance. 

He urged to this effect for full solidarity in the work of the Government and the adoption of effective communication policy towards public opinion and consultations with its economic and social partners.

Apart from the President's directives, which serve as a guidance note to the Government's plan of action, the Presidency's statement states that the Government's plan of action focuses primarily on the consolidation of the rule of law, freedoms and democracy, the promotion of good governance, the promotion of national identity and the preservation of memory.

As for the economic and financial aspect, the action plan revolves around modernizing the public finances and the banking system, clearing the economic space, promoting investment and valuing the rest of the country's resources, as well as improving the living framework by providing housing, ensuring the sound use of energy and water, protecting the environment, improving the national education system through regular training and upgrading national health.

At the social level, the Government's program of action focuses on maintaining the national system of social security, retirement and promotion of employment, strengthening mechanisms of national solidarity and continuing to help social segments of the population with special needs.

The President of the Republic, Mr Abdelaziz Bouteflika, finally congratulated the Algerian people on the occasion of the holy month of fasting of Ramadan, and hailed the members of the Government for the confidence placed in them, while exhorting them to redouble efforts to live up to the current manifold challenges, and signed on the occasion a series of individual decisions.

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