Algeria's parliament opens debate on a 2027 budget that promises pay rises without new taxes
ALGIERS — Algeria's lower house of parliament, the People's National Assembly (APN), opens its plenary debate on the 2027 Finance Bill on Monday, 2 November. The text tests a government pledge to raise salaries and protect purchasing power while public finances remain tight and the state still leans heavily on hydrocarbon revenue.
The government presents the bill at 9:00, and deputies debate it for three days. On Thursday, 5 November, parliamentary group leaders speak and ministers answer questions. The assembly votes on Monday, 16 November. The bill then passes to the Council of the Nation, the upper house, before the President promulgates it. It is due to take effect on 1 January 2027.
The figures behind the bill
The Council of Ministers adopted the draft on 4 October. Finance Minister Mohammed Lamine Lebbou presented it to the APN's finance and budget committee on 12 October.
The bill plans public spending of 17,882.6 billion dinars in 2027, roughly 136 billion US dollars at the assumed rate of 131 dinars to the dollar. Budget revenue is put at 9,251.1 billion dinars, so spending is almost double projected receipts. The government forecasts growth of 4.2 per cent and inflation of 4 per cent. It sets the fiscal reference price of oil at 60 dollars a barrel, below the 70 dollars it expects the market to pay, a cautious assumption.
Salaries and the no-new-tax pledge
Pay is the political centre of the debate. President Abdelmadjid Tebboune has said that 47 per cent of the planned salary increases have been delivered and that the remaining 53 per cent will follow in one or two instalments, depending on resources. His stated goal is to double salaries. The amounts for each category of worker and the timing are still to be fixed by the government.
The President has also ordered that no tax weighing on citizens' purchasing power be included in the bill. The text nonetheless contains targeted measures: a 20 per cent tax on the profits of companies that make or import beer, a higher ceiling for tax-deductible donations to humanitarian associations, set at 1 per cent of annual turnover, and a new independent authority to supervise economic insurance.
Much will turn on how ministers answer deputies on Thursday, especially on the timetable for the remaining pay rises. Since the Council of Ministers has already approved the text, major changes are unlikely, though committee amendments remain possible before the 16 November vote.
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