Sellal orders to reduce expenses in public administration

Algerian Prime Minister Abdelmalek Sellal gave instructions to ministers to be strict in managing financial resources in public institutions. Management expenses will be reduced by 4 percent and presents of the end of the year will be banned.

“As part of expenses optimization (…) I assign you to work on drawing the attention of administration and public institutions’ managers. They should be strict in managing financial resources,” Algeria News Agency (APS) reported citing the instruction.

“It is necessary now to reduce management expenses by 4 percent. Phone services and equipment purchasing should also be reduced by 20 percent,” it added.

Sellal said his instruction is meant to impose austerity measures and oblige public administrations to tighten the belt.

“Institutions in charge of keeping watch on public expenses are held responsible for any wrongdoing. Sanctions would be imposed on any official who does not his job properly,” said the Prime Minister.

The instruction comes as the government approved the financial act 2016. The value-added tax (VAT) was raised to around 17 percent on electricity and water consumption. Tax on oil substances was also raised.

Earlier in August, Sellal said in a meeting with prefects that the government’s management budget should be reduced by 40 percent.