Algerian President Abdelmadjid Tebboune signed, Sunday, the Finance Law for 2024, as stated in a press release from the Presidency. The signing ceremony took place at the presidential headquarters in the presence of high-ranking state officials, including government members, the President of the National People’s Assembly, the President of the Council of the Nation, and the Chief of Staff of the National People’s Army.
The law does not introduce any new taxes on consumers. Instead, it includes significant financial allocations for increasing wages and housing projects. The total expenses in the law are estimated to be around 110 billion dollars. Additionally, the Finance Law stipulates a reduction in the flat-rate tax on the activity of the self-contractor from 5% to 0.5%, with municipalities benefiting from 5% of the income from this tax.
Algeria’s economic situation in 2023 has been marked by a continued recovery from the impacts of the pandemic, driven by the resurgence of oil production and growth in the service and agricultural sectors. According to the World Bank, the recovery is expected to continue, supported by the non-hydrocarbon sector and public expenditure growth. The first half of 2022 saw a significant recovery in external balances, largely due to higher global hydrocarbon prices, with a substantial increase in the first six months followed by a decline in the third quarter. Non-hydrocarbon exports also showed notable growth.
However, the country faces challenges with high inflation, which stood at 9.4 percent year-on-year during the first nine months of 2022. This inflation was largely driven by a global rise in food prices, which significantly affected poorer households in Algeria. In response, the government has implemented measures to protect purchasing power, including increasing civil service salaries, introducing unemployment benefits for young first-time job seekers, and strengthening subsidies for basic foodstuffs.
