Commune, Wilaya Codes Overhauled for Enhanced Local Finance
President Abdelmadjid Tebboune has launched a comprehensive reform of Algeria's local governance structure, initiating a significant overhaul of the commune and wilaya codes. This nationwide effort, driven by a strong political will, seeks to profoundly transform local administration, aligning financial resources with national development ambitions. The initiative aims to enhance the financial performance of communes and wilayas, supporting the development of territorial collectivities and adapting to evolving socio-economic demands and new public performance requirements. The President emphasized a paradigm shift to make communes true drivers of national wealth and achieve a balance in development across regions.
To lead this extensive project, President Tebboune officially established the National Commission for the Revision of Communal and Wilaya Codes in October 2024. Chaired by former Interior Minister Dahou Ould Kablia, this 30-member body includes parliamentarians, walis, and local elected officials, ensuring a broad representation for legislation rooted in local realities. A primary objective of the reform is to foster decentralization by transferring numerous ministerial prerogatives directly to communes and wilayas, granting real decision-making power to local actors. This is coupled with a deep reform of local finances and taxation, designed to break the near-total dependence of communes on state subsidies and enable them to generate their own wealth, attract investment, and fully exploit local economic resources.
The legislative revisions also lay the groundwork for a modernized fiscal system capable of sustainably supporting local authorities, particularly with the new territorial map expanding to 69 wilayas. The 2024 abolition of the professional activity tax (TAP) marked the beginning of this financial re-engineering, with the state implementing compensation mechanisms through reallocation of housing tax and targeted redistribution of petroleum and mining taxes. Furthermore, the reform aims to resolve regional disparities by establishing legislative solutions to address economic inequalities between communes. The new codes clarify governance roles, strengthening the legal protection of local managers and envisioning elected officials as "territory managers" with full prerogatives, including the APW President acting as an authorizing officer. This comprehensive modernization, incorporating digitalization and improved administrative management, reinforces the partnership between the state and local collectivités, ensuring financial visibility and public effectiveness for Algeria’s new local governance.
