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The indicators of the Algerian economy are positive, characterized by appreciable growth rates, the maintenance of external balances with a decline in inflation confirm the correctness of the orientation adopted by the country, affirmed the Minister of Finance, Abdelkrim Bouzred, specifying that the budget deficit will be financed by domestic debt without impact on prices and inflation.
In responses to questions from deputies formulated as part of the debate on the 2026 finance bill (PLF), the minister highlighted the progress made by the Algerian economy, affirming that efforts are continuing to accelerate digitalization as well as financial, tax and budgetary reforms.
During a plenary session, which ended on Tuesday evening at the National People’s Assembly, chaired by Brahim Boughali, President of the Assembly, in the presence of members of the government, devoted to responding to questions and concerns from deputies, Bouzred indicated that the results recorded over the last few years testify to the transformation experienced by the national economy, which has “really” moved away from the rentier logic to move towards a real diversification of revenues. This orientation constituted the basis on which next year’s budget is based, as part of a financial policy aimed at strengthening growth and improving the management of public resources, said the minister.
Complete the scanning process
The minister, in this regard, recalled that the economic and financial policies adopted had made it possible to preserve external balances, affirming that the Algerian economy is moving in “the right direction”. At the same time, efforts have been intensified at the level of the various administrations to complete, as quickly as possible, the digitization operation with a view to setting up a unified database facilitating the various transactions and contributing to the strengthening of the ongoing reform process.
According to the minister, the digitalization operation in the finance sector is making “satisfactory” progress, given that the Ministry of Finance now has a database containing the assets of citizens and businesses and that cooperation agreements have been signed with other organizations for an exchange of information.
In this sense, he announced that citizens will be able, at the beginning of 2026, to remotely access administrative documents relating to their property, a step which constitutes, he said, “a qualitative leap” towards a modern digital administration. The electronic land book will also be put into service during the first half of 2026, Bouzred added, signaling the launch by the end of the current year of an integrated digital tax administration system, including all the files of traders and economic operators. The latter will guarantee more transparency and “prevent any manipulation of files or the rights of the State and citizens”, he assured.
Radical transformation of budget management
The country’s top financier also affirmed that budget management will undergo, from the start of next year, a radical transformation, consisting of a total use of electronic transactions, which will facilitate the payment of salaries, the collection of statistics and the monitoring of financial operations, with digitization expected to extend, subsequently, to the Public Treasury.
The digitalization of budget execution operations will enable the improvement of liquidity management, particularly with regard to corporate receivables and investment operations. Thanks to the electronic monitoring system, the Treasury will be able to identify entities that have not used the funds allocated to them, thus allowing better control of expenditure and more efficient use of public expenditure.
Referring to the issue of subsidies for consumer products, Bouzred underlined that “the acceleration of digitalization, with a view to the creation of an exhaustive database containing all information on citizens, will allow the application of a system of direct aid to citizens in need”.
Domestic debt to finance the deficit
The Ministry of Finance is also working to revise and simplify public procurement procedures within the framework of the new Public Procurement Law of 2023, the minister added, specifying that the executive decree of this law has not yet been published due to the introduction of amendments aimed at simplifying procedures.
The amendments will make it possible to take into account the specificities of the southern regions, said the minister, adding that the ministry “aspires to establish a system dedicated to public procurement in the south”.
He stressed that “the amendments will guarantee the effectiveness of project execution and their monitoring on the ground”. Regarding the budget deficit, the minister indicated that “the deficit will be financed by domestic debt without impact on prices and inflation rates”. The current level of domestic debt is estimated at nearly 18,000 billion dinars, including 8,000 billion intended to cover the budget deficit and 6,000 billion of unconventional debt for the year 2017, and 3,500 billion dinars representing credits intended for public companies, in particular Sonelgaz to finance electricity production projects and desalination stations, specifies Bouzred.