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FINANCIAL NEWS
Algeria to cut spending by 9 percent in 2016
30 Aug 2015
(MENAFN) Algeria’s government said it will cut spending by 9 percent in 2016, mainly due to the sharp drop in oil prices, as OPEC tries to counter the drop in energy revenues that account for 60 percent of its budget.
The North African country still has more than USD150 billion in foreign reserves and little foreign debt, but it relies heavily on its oil and gas revenue for a huge welfare program for everything.
The government had already announced a cut of 1.3 percent cut in this year’s budget after it said the fall in world crude prices would slash its energy earnings by 50 percent.
“We need courageous decisions for 2016, so we have decided on a 9 percent cut in the budget,” Prime Minister told a meeting of local government officials, state media reported.
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