Experts: these are austerity scenario in Algeria

The first copy of the draft financial act 2016 shows a big transformation in the government’s financial policy as it moved from expenses optimization to austerity, according to experts.

Former Secretary of State in charge of prospective and statistics Bachir Msitpha said the draft law is still under examination. This means propositions about raising fuel and electricity price may be banned.

He added that such a decision would raise anger among people who will not accept the banning of subsidy.

“The Treasury will face unbearable charges due to the government’s policy to satisfy people will,” he said.

He believes that subsidy should be banned gradually. “The year 2017 will be the last year of subsidy. The government will have to stop it is oil price keeps falling.”

According to expert Kamel Dib, reports about raising electricity and fuel price are meant to sound the poll to find out people’s reaction.

“The government will have to admit that it will move from optimizing expenses to austerity,” he said.

“Raising electricity and fuel price is no more than gradually banning of subsidy. Members of Parliament would not make any changes when the draft law is discussed,” he added.

He believes that public transportation price will be raised following such a decision will. “The government should take this into consideration. It also should reduce ministers’ salary to show solidarity with middle-class people.”

According to expert Abderrahmane Mabtoul, Algeria’s financial situation shows that it entered a delicate phase. “That needs more optimization of expenses during the next year. The belt must be tightened. Those propositions were included in the first copy of the draft financial act 2016.”