Against an international backdrop shaped by persistent geopolitical uncertainties, inflationary pressures, energy market volatility, and slowing global economic growth, Algeria intends to pursue a fiscal policy centered on driving growth, improving citizens’ living standards, and realizing major public investment projects. Finance Minister Mohamed Lamine Lebbou emphasized this focus during the presentation of the 2027 draft finance bill (PLF) before members of the National People’s Assembly (APN).
Regarding budgetary guidelines, the minister stated that crafting the draft relies upon several foundational principles, notably exercising prudence when estimating revenues—taking into account national and international economic shifts—while safeguarding fiscal sustainability. The objective also involves balancing macroeconomic stability with economic diversification while maintaining equilibrium between public investment and social transfers.
In this capacity, PLF 2027 forecasts gross domestic product (GDP) growth reaching 4.2%, fueled primarily by sustained momentum across non-hydrocarbon activities. Budgetary revenues are expected to exceed 9,251.1 billion dinars.
On the social front, the bill accords central focus to preserving purchasing power and improving citizen living conditions. To this end, social transfers receive an allocation of 2,414.15 billion dinars, including 717.7 billion dinars dedicated to supporting and stabilizing prices for essential goods and staple products.
Supporting economic activity and employment likewise constitutes a key pillar of PLF 2027. An overall budget of 368 billion dinars is slated for placement programs, incorporating 210 billion dinars earmarked for unemployment benefits alongside 158 billion dinars allocated toward integrating local government staff. Added to this is the prospective creation of 125,675 employment positions, comprising 82,948 supplementary posts.
In the housing domain, appropriations dedicated to the sector and housing assistance subsidies reach 517.5 billion dinars. Meanwhile, national education will receive an allocation of 1,875.32 billion dinars, including 191.69 billion dinars reserved for investment, with plans for 46,223 additional employment posts. For its part, the health sector will be allocated 1,138.72 billion dinars.
The bill also allocates resources to strengthen public facilities within newly integrated residential developments. To this end, an amount of 180.4 billion dinars in program authorizations and 37.5 billion dinars in payment credits has been mobilized under the housing sector portfolio. This funding will notably enable constructing 320 primary schools, 140 middle schools, 77 high schools, and 50 polyclinics.
Concerning structural projects, overall costs are estimated at 3,689.93 billion dinars. For the 2027 fiscal period, planned appropriations stand at 62.4 billion dinars in program authorizations and 360.73 billion dinars in payment credits to advance execution across multiple major strategic initiatives.
Accelerating digital transformation also ranks among selected priority axes. Under state service modernization, PLF 2027 earmarks 33.55 billion dinars in program authorizations and 24.82 billion dinars in payment credits, dedicated to registering 168 new operations spanning various ministerial sectors.
Strengthening program management effectiveness—in line with established targets and benchmarks—expanding the tax base to solidify regular tax revenues, and conducting regular budget execution monitoring are also among the core guidelines. This tracking will rely upon a dashboard covering revenues, expenditure, treasury balances, and investments.
Along similar lines, the Finance Minister detailed proposed legislative measures within PLF 2027, organized across nine main axes. These address supporting investment and the national economy (14 measures), supporting purchasing power, enhancing living environments, and encouraging national solidarity (7 measures), as well as broadening the tax base and resource mobilization (21 measures).
These provisions further encompass procedure simplification and administrative modernization (5 measures), enhancing compliance with tax obligations and combating tax fraud and evasion (9 measures), alongside customs measures (19 measures) and national domain provisions (29 measures). Five additional measures concern special appropriation accounts, alongside supplemental provisions.