Parliament Considers 2027 Budget, No New Taxes on Purchasing Power

The National People's Assembly (APN) began its examination of the 2027 Finance Law project on Monday, November 2. This legislative proposal notably integrates anticipated salary increases for Algerian citizens and stipulates the absence of any new taxes that would affect purchasing power. The general debate phase is set to continue throughout the week, with parliamentary group presidents and government responses scheduled for Thursday, November 5, before a final vote by deputies on Monday, November 16.

The inclusion of salary increases in the budget comes directly from presidential directives. President Abdelmadjid Tebboune had previously ordered these increases to be part of the budget, fulfilling earlier commitments. He reiterated his pledge to realize the remaining 53% of salary increases, clarifying that these would be applied in one or two tranches. This initiative is part of a broader objective to double salaries, with 47% of increases already implemented. Furthermore, President Tebboune also mandated that no new taxes impacting citizens' purchasing power be included in the project, ensuring that wage increases are not negated by additional fiscal burdens.

The 2027 Finance Law project is underpinned by a reference fiscal price of $60 per barrel for oil, with a provisional market price anticipated at $70 per barrel. The text forecasts an average inflation rate of 4% and an average exchange rate of 131 dinars to the dollar between 2027 and 2029. Public expenditures are projected to reach 17,882.6 billion dinars in payment credits. Following the APN vote, the draft law will proceed to the Council of the Nation, the upper house of Parliament, before being promulgated by the President of the Republic to take effect on January 1, 2027.