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FINANCIAL NEWS
Algeria plans to raise state budget 16 percent in 2015
27 Aug 2014
(MENAFN) Algeria plans to increase state spending by 16 percent in 2015, thus pushing up its deficit to 22 percent of gross domestic product (GDP) despite declining energy earnings, Khaleeji Times reported.
The budget sets 2015 spending at USD112 billion, with part of it going to boost growth in sectors including industry, agriculture and energy, while the other part will be spent on fuel, electricity, gas and housing.
Algeria mostly relies on oil and gas exports, which accounts for almost 97 percent of total exports, to finance government development and social programs, but their revenue has been declining in recent years.
The government expects that 2015 economic growth will reach 3.42 percent, down from 4.5 percent predicted for this year, while inflation is expected to hit 3 percent, a bit lower than 3.5 percent which was forecasted for this year.
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