Algeria’s Finance Minister, Laziz Fayed, has presented a historic draft budget of $128 billion for 2025 to the nation’s Parliament, marking the largest budget in the country’s history.
This ambitious proposal includes a substantial deficit of $62 billion and dedicates $25 billion specifically to defense spending.
Fayed’s announcement highlights the government’s strategic focus on economic stability and security as Algeria grapples with ongoing global economic pressures and the residual impacts of the COVID-19 pandemic.
During his parliamentary address, Fayed emphasized the budget’s role in bolstering Algeria’s economic resilience while aiming to protect citizens’ purchasing power.
Key measures in the budget include the elimination of income tax for certain income brackets, adjustments to the minimum wage, and improvements in public services.
These initiatives, Fayed noted, are designed to support the daily lives of Algerians as the country recovers from recent economic strains.
“The proposed budget is a significant turning point for Algeria,” said Fayed.
“It reflects our commitment to stability and the well-being of our citizens.”
The budget also includes considerable investments in national infrastructure, particularly in Algeria’s southern regions, as well as upgrades across the country’s essential facilities.
Alongside these development projects, Fayed outlined the government’s efforts to reinvigorate suspended investment projects and generate new public sector jobs.
Additionally, the budget aims to stabilize retirement pensions, address unemployment benefits, and limit unnecessary expenditures, demonstrating the government’s commitment to strengthening social welfare.
A notable feature of the budget is the significant increase in defense spending, signaling Algeria’s prioritization of national security amid mounting regional and international challenges.
By allocating $25 billion to defense, the government aims to ensure the country’s safety and preparedness in an increasingly complex global environment.
Parliamentary debate over the draft budget is expected to be robust, with discussions anticipated on Algeria’s financial priorities and the feasibility of sustaining such a high level of expenditure.
The proposed budget arrives at a critical time, as Algeria navigates both domestic economic needs and broader geopolitical tensions.
Observers are closely watching the outcome, with expectations that this record-breaking budget will have a transformative impact on Algeria’s economic landscape.
