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Algeria’s 2025 Finance Bill Published in the Official Gazette: Key Reforms to Safeguard Economic Stability and Foster Growth

Algeria's 2025 Finance Bill Published in the Official Gazette: Key Reforms to Safeguard Economic Stability and Foster Growth
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BY: Dr. Hana Saada

Algiers, Algeria | December 30th, 2024 —  Algeria’s 2025 Finance Bill has been officially published in the Official Gazette No. 84, confirming the government’s ambitious fiscal agenda for the upcoming year. Signed by President Abdelmadjid Tebboune on November 24, this comprehensive legislative framework is designed to address the pressing economic challenges of inflation, unemployment, and financial instability. The law aims to strike a balance between protecting citizens’ purchasing power and ensuring the country’s long-term economic development.

The 2025 Finance Law, which passed through the People’s National Assembly (APN) on November 13 and was approved by the Council of the Nation on November 16, introduces a series of strategic reforms aimed at enhancing Algeria’s financial sustainability. Notably, the law targets a 3.5% increase in budgetary revenues, projected to reach 8,523.06 billion Algerian dinars, while public expenditures are set to rise by 9.9%, totaling 16,794.61 billion Algerian dinars in 2025. This fiscal maneuver is a deliberate effort to balance government spending while ensuring the economy’s continued growth.

A central aspect of the new law is the protection of citizens’ purchasing power, which has been heavily impacted by global inflationary pressures. To mitigate these effects, the law introduces several fiscal incentives, including subsidies, tax breaks, and measures to alleviate the financial burden on everyday consumers. These provisions are vital to ensuring that Algeria’s economic transformation does not come at the expense of its citizens’ well-being.

Additionally, the Finance Law outlines provisions to boost investments in key sectors, aiming to further expand the national economy. The government has committed to simplifying and digitizing the taxation system, making it easier for businesses and individuals to comply with regulations. This reform is expected to reduce administrative hurdles and foster a more business-friendly environment.

The law is based on a medium-term oil price forecast of 60 USD per barrel for the period from 2025 to 2027, although current market prices have stabilized at 70 USD per barrel. This difference highlights the government’s prudent approach to energy market fluctuations, allowing for flexibility in managing national revenues.

The 2025 Finance Bill marks a significant milestone in Algeria’s efforts to achieve fiscal stability and long-term economic growth. With its blend of budgetary reforms, investment incentives, and social protections, the law seeks to build a resilient economy that benefits both current and future generations. As Algeria faces the challenges of an ever-changing global economy, this bold fiscal policy sets a clear path toward a prosperous and sustainable future.

 

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