DZWatch Exclusive: Algeria’s proposed 2026 budget law reflects a strategic balancing act between maintaining a strong social safety net and pushing forward with crucial economic reforms. This is according to Dr. Reda Bencherif, Professor of Economics and Director of the Laboratory of Economic Policies and Sustainable Development, in an exclusive interview with DZWatch.
Dr. Bencherif emphasized that the unwavering commitment to social welfare is the defining characteristic of the 2026 budget proposal. “This reflects the state’s awareness of the true priorities of Algerian citizens in the face of regional and global economic challenges,” he stated.
He highlighted the allocation of approximately 6,000 billion dinars for transfer payments as a powerful indicator of the state’s continued social role, even amidst efforts to rationalize spending. This includes 420 billion dinars for unemployment benefits, 424 billion dinars to support the pension fund, and 656 billion dinars to subsidize essential goods like wheat.
“These figures are not mere accounting numbers; they are a tangible translation of a policy that places the citizen at the heart of its concerns, especially vulnerable groups and the middle class who are suffering from the pressures of the high cost of living,” Dr. Bencherif explained.
The economist also noted the significant allocation of 2,800 billion dinars to public service institutions such as universities and hospitals. He described this as a strategic vision that considers education and health as investments in human capital, rather than simply consumption expenditures. “At a time when some countries are moving towards the privatization of the education and health sectors, Algeria continues to support these vital sectors, which should be valued as a sovereign choice that protects the right to education and health for all,” he added.
Furthermore, Dr. Bencherif sees the reduction of income tax as an indirect form of support for families, potentially boosting disposable income and stimulating domestic demand. The 2026 budget proposal underscores Algeria’s commitment to a mixed economic model, prioritizing both social justice and sustainable economic growth.
