Algerian MPs are examining the draft budget settlement law for the 2023 fiscal year, the first text prepared under Organic Law 15-18 concerning finance laws.
Before the Finance and Budget Committee, the President of the Court of Auditors detailed the main indicators of a year marked by contrasting results.
Budgetary resources reached 9,017.439 billion dinars, an increase of 24.47% compared to 2022. Tax revenues amounted to 3,495.040 billion dinars (+16.98%), while oil revenues represented 42.76% of total resources, confirming the treasury’s structural dependence on hydrocarbons.
Despite this improvement in revenue, overall budget expenditures peaked at 10,593.825 billion dinars, generating a net budget deficit of 1,572.71 billion dinars. Personnel expenses (3,213.949 billion dinars) and investment (5,339.537 billion dinars) accounted for the bulk of these expenditures.
Even more concerning, the coverage ratio of operating expenses by ordinary resources was limited to 54.89%, compared to 72.90% in 2021.
This decline highlights an increased vulnerability to fluctuations in oil revenues, even as the authorities declare their objective of economic diversification.
Beyond the budget balance, it is the execution of appropriations that is drawing criticism. The budget execution rate stood at 72.02%, a significant decrease compared to the 90.32% recorded in 2022.
Capital expenditures show a particularly low execution rate. The commission members noted the cancellation of 4.114 billion dinars in appropriations, while development needs remain substantial.
Approximately 20,000 projects are reportedly affected by suspension, non-start, or partial progress.
Delays in the execution and payment of receivables, sometimes exceeding three months at the local level, weaken businesses and lead to the reassessment of certain investments, generating additional
costs for the treasury.
When questioned about these dysfunctions, the finance minister cited disparities in administrative capacity between provinces and sectors, as well as constraints in human and material resources. He clarified that certain execution rates, particularly the 23% figure, reflected phases of loan disbursement and not the actual progress of the projects. A payment tracking platform has reportedly been established, with current payment times, estimated at between two and three months, considered to be in line with international practices.
MK/AK/fss/as/APA