The draft law was voted on during a public session chaired by the President of the National People’s Assembly, Ibrahim Bougali, in the presence of Finance Minister Laziz Fayed and members of the government.
The representatives also voted on the proposed amendments to the draft law included in the supplementary report of the House Finance and Budget Committee, to which 90 amendments were referred by the representatives.
This vote is considered an important step towards approving the state budget for 2025, which will focus on accelerating economic development, combating unemployment, and enhancing investments in vital sectors such as industry and infrastructure, according to the Algerian Ministry of Finance.
Algerian economic experts believed that the draft law introduced new measures aimed at promoting investment and supporting the national economy, as well as new measures to support purchasing power and improve the citizen’s living framework, and enshrines the expansion of the tax base while introducing a number of tax incentives and facilities that affect many sectors of economic activity without including new taxes.
While the parliamentary bloc of the “Movement for Society of Peace” rejected the draft law and voted against it, noting that this was due to “the occurrence of a group of legal violations in form and substance in the presentation of the draft law at the level of the Finance and Budget Committee,” in addition to “the unjust acceleration in studying the draft law, and the hasty “It is clear that it will be passed in a very short period of time.”
The movement also noted that the rejection of the amendments and proposals presented by representatives of its parliamentary group was “based on unconvincing justifications, the lack of the necessary professionalism and seriousness in studying the draft law, and its treatment of the state budget in a traditional manner that is not consistent with the requirements of the Programs, Objectives and Indicators Law.”
She criticized the law for “the lack of transparency with regard to the budget allocated to institutions under guardianship and the absence of indicators to measure efficiency, which makes parliamentary oversight impossible, and the lack of information systems that allow monitoring the implementation of the budget.”
It is noteworthy that the draft Finance Law for the year 2025 will be presented to the National Assembly for further discussion and approval, before it enters into force at the beginning of next year.
Algerian President Abdelmadjid Tebboune is likely to make a government reshuffle after approving the 2025 budget.
Source: Algerian media
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What impact do the proposed tax incentives in the 2025 state budget have on small and medium-sized enterprises (SMEs) in Algeria?
**Interview with Dr. Amina Benali, Algerian Economic Expert**
*Interviewer*: Thank you for joining us today, Dr. Benali. The recent vote on the draft law related to the 2025 state budget is a significant development in Algeria’s economic strategy. Can you explain why this vote is considered so crucial?
*Dr. Benali*: Thank you for having me. The vote on the draft law is indeed pivotal as it lays the groundwork for Algeria’s economic policies aimed at sustainable growth. The state budget for 2025 is designed to accelerate economic development, reduce unemployment, and stimulate investments in key sectors like industry and infrastructure. This is a strategic move to diversify our economy and reduce reliance on oil revenues, which have been quite volatile.
*Interviewer*: You mentioned unemployment reduction as a focus area. What specific measures does the draft law include to tackle this issue?
*Dr. Benali*: The draft law introduces several measures aimed at stimulating job creation. These include incentives for private sector investments and support for businesses, particularly small and medium-sized enterprises (SMEs). By expanding the tax base and providing tax incentives, the government hopes to encourage entrepreneurship and attract foreign investment, which is essential for job creation.
*Interviewer*: There were 90 amendments referred by representatives before the vote. Can you tell us about the nature of these amendments and their expected impact?
*Dr. Benali*: The amendments primarily focused on enhancing the effectiveness of the draft law. Many aimed to refine the proposed tax incentives and ensure that they adequately support both businesses and citizens. For instance, some amendments emphasize improving purchasing power, which is critical in the current economic climate where many citizens are facing financial challenges. By ensuring that the budget addresses the needs of both the economy and the public, the amendments can lead to a more comprehensive and effective approach to economic recovery.
*Interviewer*: What do you think are the major challenges ahead in implementing this new financial model for 2025?
*Dr. Benali*: One significant challenge will be the execution of these policies in a transparent and efficient manner. The success of this financial model will depend on the government’s ability to implement these measures effectively and to monitor their outcomes. Additionally, political stability and public confidence in the government’s economic strategy will be crucial for fostering a conducive environment for investment and growth.
*Interviewer*: Thank you, Dr. Benali, for your insights. It seems the next few years will be critical for Algeria’s economic trajectory.
*Dr. Benali*: Absolutely. The decisions made now will shape the future of our economy and the well-being of our citizens. It’s an important time, and we need to stay engaged and ensure that the proposed measures bring tangible benefits. Thank you for having me.
