Algeria : Treasury needs DZD570 billion to cover deficit until end 2017

  • 01 October 2017 / News / 529 / Emerging Africa

Algeria : Treasury needs DZD570 billion to cover deficit until end 2017

The Treasury needs about DZD570 billion to cover its deficit until the end of 2017, said Thursday, in Algiers, Director General of the Treasury Faycal Tadinit, underlining the “efficiency” of non-conventional financing for the re-establishment of budget balances, if it is used wisely.

The 2017 budget law drew nearly 6.002 billion dinars of revenue and 7.115 billion dinars of expenditure, a deficit of 1.113 billion dinars, which the Treasury partially covers, said Mr. Tadinit when presenting the situation of the Treasury before the Finance and Budget Committee of People’s National Assembly. 

The Director General of the Treasury was interviewed by the Commission in connection with the examination of the draft law supplementing and amending the ordinance on currency and credit, which is intended to allow Bank Algeria to proceed, on an exceptional basis and for a period of five years, and  purchase directly from the Consolidated Revenue Fund.

Regarding the draft law, Tadinit said that “non-conventional financing is a known financial technique that has proved its worth in certain circumstances”.

“The current situation requires us to move towards this type of financing,” he argued.

As regards the impact of this financing, the same official said “if some experts focus on highlighting the disadvantages of this funding, others say that it is a tool that can be effective “.

The Director of the Treasury, in his presentation on the causes of the current budget deficit, said that the decline in oil prices since the second half of 2014 had a strong impact on the decline in the Treasury’s financial revenues.

Despite this situation, the Government has continued its efforts in the field of ​​public investment for development in order to maintain the economic growth rate at an acceptable level and preserve jobs, he argued.

source: dzbreaking

See too