Algerian President Abdelmadjid Tebboune signed today, Sunday, the finance law for the new year, which approved the largest budget in the country’s history, marking its entry into force as of next January 1.
The Algerian presidency said that the signing ceremony was held at Al-Mouradia Palace in the presence of members of the new government staff.
On November 16, the National People’s Assembly and the National Assembly (the two chambers of the Algerian Parliament) approved the country’s draft general budget for the year 2025 unanimously.
Algeria’s 2025 budget expects:
- A historic deficit and a spending level that is the highest in the country’s history.
- The budget is free of new fees and taxes.
- Numerous tax and customs exemptions for goods and products imported from abroad, as part of the government’s endeavor to preserve the purchasing power of citizens.
Details of Algeria’s budget for the year 2025
The Finance Law approved a budget that is the largest in the history of Algeria, with total expenditures exceeding 16,700 billion dinars ($128 billion), up from $112 billion in 2024, which represents an increase in spending of about 10% compared to last year.
The Ministry of Finance’s forecasts indicate that the country’s revenues in the new year will reach 8,523 billion dinars ($64 billion), an increase of 4.5% compared to the current year’s revenues, and an increase in oil and gas exports by 1.9%.
The state’s general budget was prepared based on a reference price of a barrel of oil estimated at $70, over the next three years.
The project expects Algeria’s budget deficit to worsen in the coming year, reaching 8,271 billion dinars ($62 billion), or the equivalent of 19.8% of the gross domestic product, up from 43 billion in 2024.
Algeria’s economy suffers from excessive dependence on oil and gas revenues, as they represent about 90% of the country’s foreign exchange income.
According to the same document, economic growth is expected to reach 4.5% in 2025 and 2026, and 3.7% in 2027, a decline that the government justified by “the expected decline in the growth of the hydrocarbon sector.”
