Algeria targets 35% budget deficit reduction in 2026
Record spending aims to sustain growth while cutting fiscal gap through non-hydrocarbon expansion and stronger domestic investment
ALGIERS, Algeria (MNTV) — Algeria plans to cut its budget deficit by 35.5 percent to $40 billion in 2026, equivalent to 12.4 percent of GDP, even as it adopts a record spending plan aimed at stimulating economic growth and supporting citizens’ purchasing power.
According to the 2026 draft budget bill, reviewed ahead of parliamentary approval, total government expenditure is projected to exceed $135 billion, compared with $128 billion in 2025 and $112 billion in 2024.
Officials expect the deficit to shrink from $62 billion this year, driven by expansion in non-hydrocarbon sectors including agriculture, construction, and manufacturing, which are seen as key engines for diversification and job creation.
A member of the Organization of the Petroleum Exporting Countries (OPEC), Algeria continues to rely heavily on gas revenues, but its government is investing in broader economic reform to reduce dependence on hydrocarbons and strengthen domestic industry.
The budget assumes an average oil price of $60 per barrel and forecasts national economic growth of 4.1 percent in 2026, slightly below the 4.5 percent growth anticipated for 2025.
Public sector wages will represent about one-third of total expenditures next year, rising 1.4 percent to nearly $45 billion as part of measures to maintain social stability and stimulate household demand.
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