Debts' Nightmare Is Back, Revenues Fund To Reach 00 DZD By The End Of 2017

Revenues fund would be a haven for government by the year 2017, and with zero dinars by the end of next year, Finance Minister, Hadji Baba Ammi, told APS, on Saturday.

“Fund balance is currently estimated at 740 billion DZD, and it will be used in 2017 at the same value limits in order to remedy the budget deficit”.

“We have continued to finance the deficits by resorting to the revenues fund and we will use during the next year, over 740 billion DZD, which is the value that remains in the fund. Budget revenues are expected to increase, which will allow gradually the compensation of the used resources”.

Finance talked about the government’s decision to glorify the new projects next year, explaining: “Reluctance of the government for the launch of new projects stems from the policy of austerity, but from its commitment to completing the projects, which were launched by its workshops”.

“Government plans to stabilize public expenditure within the next three years without resorting to cuts in the budget. We will not reduce the budget expenditures, but we will make sure of its stability within the next three years”.

“Food prices will remain stable, and the expenses on education, health, and those directed to the Youth Employment Systems will remain stable, recalling that high VAT that does not belong to any form of basic materials that are exempted from this fee.”

“Social policy that is pursued by the government will remain the same if the latter will not place an effective system of subsidies. There is a service for identifying the areas that deserve subsidies.”, acknowledging that the generalized subsidies that weigh down the state budget are unfair because they do not serve the most vulnerable groups.

Regarding foreign debt, the minister did not rule out resorting to foreign borrowing: “Low level of debt gives Algeria important capabilities in this case, by giving the possibility if needed to Sonelgaz company to resort to the international financial market to finance its important investment program. But in spite of this possibility, both Sonelgaz and Sonatrach did not resort to borrowing so far because the need was not required”.

Regarding the opening of the public banks’ capital, he explained that it is not an option, even though it was mentioned in the first version of the preliminary draft budget law for the year 2017. 

“Draft Finance Act is adjustable, as suggestions, discussions and propositions can be made”.