Yesterday, Tuesday, the deputies of the National People’s Assembly of Algeria approved the finance bill for 2023 by a majority vote in the plenary session, as it included the largest budget in the history of Algeria.
The 2023 budget is described as the largest since independence, as its expenditure is around 786 billion dinars, split between management costs (9.767 billion dinars), an increase of 27 percent, and expenses for equipment (4,019 billion dinars, an increase of 2 .7 percent). percent.
Earlier, Algerian Finance Minister Ibrahim Djamel Casali confirmed that the measures introduced by the draft Finance Law for 2023 will give new dynamism to the national economy and strengthen the state’s social policy efforts.
The Minister emphasized the importance of fiscal incentives aimed at investment, which include incentives for start-ups and incubators, the exemption of export operations carried out by individuals from all taxes and fees, as well as the establishment of a reduced tax rate on corporate profits of 10 percent in favor of manufacturing companies that purchase manufacturing equipment to increase their ability to self-finance. And the abolition of professional activity fees for manufacturing establishments and liberal professions, as well as the inclusion of incentives to support agricultural activities.
With regard to the budget burden, Casali stressed that the state will gradually withdraw funding for some commercial projects, and this with the entry into force of the law on public-private partnership, noting that these are efforts that are “an integral part of the reform of public finances, the purpose of which is the exclusion of the state from projects of a similar nature.” Business for the private sector.
On the social side, he stated that the state would continue to subsidize most basic foodstuffs such as semolina, butter, bread and gasoline in order to maintain the purchasing power of citizens, adding that the rise in the value of the dinar against the euro would lead to lower prices for imported products. which will help curb inflation in the country.
Speaking about how to finance the expected deficit in 2023, the minister ruled out resorting to external financing, as he would rely on domestic financing. He also explained that the 2023 budget was calculated based on an estimated oil price of $60 per barrel, which is a “cautious price” and well below the market price, which is expected to be in the range of $90 to $100 per barrel. barrel.