December 2, 2022

Algeria, one of Africa’s top military powers, has more than doubled its 2023 defense budget from this year to more than $22 billion, according to a finance bill approved by parliament on Tuesday.

Thus, the budget of the Ministry of National Defense remains in first place in the total budget of the state, followed by the budget of the Ministry of Finance, the allocation of which amounted to more than 21 billion dollars.

According to the bill approved by the National People’s Assembly, the budget allocated about 3186 billion dinars (more than $22 billion) for national defense spending.

In the current year’s budget, the national defense budget amounted to 1,300 billion dinars (more than $9 billion).

This unprecedented increase in military spending comes in the context of serious tensions between Algeria and Morocco after Algeria severed diplomatic relations with Rabat in August 2021 due to deep disagreements between the two neighbors and a security rapprochement between the Kingdom and Israel.

The financing of this budget was made possible by the high prices for hydrocarbons, the main source of which is Algeria.

On Monday, an International Monetary Fund delegation said at the end of a November 6-21 visit to Algeria that “rising fuel prices are helping to speed up the recovery of the Algerian economy from the shock caused by the pandemic.” . Exceptional hydrocarbon revenues eased fiscal and external pressures.”

And after the House of Representatives approves it, the National Assembly must approve the bill of finance for President Abdelmajid Tebbun to sign it and publish it in the Official Gazette as a valid law.

According to the bill, the total amount of expected expenses was more than $99 billion, and the amount of expected revenues was $56.8 billion, that is, the budget deficit exceeds $42 billion.

The government expected the economic growth rate to reach 4.1% in 2023, while the inflation rate was expected at 5.1%.

The budget was based on a base oil price of $60/bbl and a market price of $70/bbl.

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