In a recent session at the National People’s Assembly, Algeria’s Minister of Finance, Laaziz Faid, emphasized that the measures implemented by public authorities are poised to have a positive impact on curbing inflation, which has been steadily declining over several months. These measures encompass ensuring an ample supply of raw materials, price regulation, and subsidies.
Addressing questions from deputies regarding the 2023 amended budget bill, Minister Faid revealed that the average price increase in July reached 9.7%. He also highlighted a consistent monthly decrease in the consumer price index since May.
When discussing the inflation forecast for 2023 (7.5%), Minister Faid underscored that this projection takes into account the Algerian consumer basket, which includes numerous subsidized products and services. Additionally, it considers the expected effects of government measures, such as increased food and agricultural product availability, price controls, and a reduction in customs duties on essential consumer goods.
Among these measures is a significant reduction in customs duties from 30% to 5% for the import of fresh, refrigerated, and vacuum-packed bovine and ovine meats, as well as imported live cattle. Furthermore, measures to combat price speculation on raw materials are expected to contribute to reducing inflation in the remaining months of the year.
Explaining the retroactive reduction in customs duties on imported meat (effective from March 1, 2023), Minister Faid emphasized that this step aims to ensure the availability of these products in local markets at reasonable prices, particularly during the sacred month of Ramadan, to preserve consumers’ purchasing power.
The Minister also highlighted the government’s efforts to rationalize imports, which have led to a decrease from nearly 60 billion dollars in 2014 to less than 39 billion dollars in 2022.
Responding to deputies’ questions about frozen investment projects in various regions, Minister Faid noted that the freeze has recently been lifted on 782 operations nationwide, with authorization commitments totaling 1.172 billion Algerian dinars. He emphasized that it is now the responsibility of the relevant sectors to submit requests for the release of investment project freezes to the Ministry of Finance.
Regarding the absence of bank branches in some newly established wilayas (provinces), Minister Faid assured that preparations are underway to open bank branches in areas lacking such financial infrastructure.
He cited examples of the Banque de l’Agriculture et du Développement Rural (BADR), which already has branches in seven newly established wilayas, and the Banque Nationale d’Algérie (BNA), which operates in three locations and is in the process of establishing an additional branch.
In addition, Minister Faid addressed the recruitment of teaching staff with master’s and doctoral degrees, stating that his department has allocated an additional 4,800 budgetary positions for 2023, in addition to the existing 3,156 vacant positions within the higher education and scientific research sector, totaling nearly 8,000 positions.
Regarding the modernization of tax services, the Minister affirmed that the tax administration is actively implementing President Abdelmadjid Tebboune’s commitment to digitize tax services. Currently, 62 tax services, including 41 tax centers and 20 proximity tax centers, have adopted this digital system, in addition to the Directorate of Large Enterprises (DGE).
During the debate on the budget bill, several deputies commended the measures aimed at bolstering citizens’ purchasing power and called for the efficient implementation of these measures to ensure price stability and the availability of essential consumer products.
