Finance minister: Algeria will have to reduce expenses

Algerian finance minister Karim Djoudi sounded the alarm and called for carefulness in pay raise in order to face the global crisis which started hitting Algeria due to oil prices fall.

“Algeria may face problems in budget balance in the future,” Djoudi told journalists on Thursday.

“Workers’ pay has been considerably raised in the last few years. Yet, we have to be careful because the financial crisis caused oil prices fall,” he added.

He believes that the government should be careful in dealing with Algeria’s financial policy management by keeping watch on equipment expenses. “There may be a need for limiting or postponing projects as well rationalizing pay-related expenses.”

Speaking about tax avoidance, Djoudi said fiscal administration keeps watch on hydrocarbon exports. “Allegations about tax avoidance in this strategic sector are baseless.”

He admitted that a number of oil companies did not pay taxes.