ALGIERS- Finance Minister Laaziz Fayed presented, on Wednesday in Algiers, the text of the law on the budget regulation for the 2020 financial year before the members of the Council of the Nation.
During a session chaired by Mr. Salah Goudjil, President of the Upper Chamber of Parliament, in the presence of the Minister for Relations with Parliament and members of the Government, Mr. Fayed recalled the macroeconomic and financial context of the law of supplementary finance (LFC) for the 2020 financial year marked by the drop in global demand for oil and natural gas, and the exceptional economic situation due to the effects of the Covid-19 health crisis.
The average economic growth in 2020 reached a rate of -5.1% in 2020 once morest 1% in 2019 while it was expected to achieve a rate of -2.6 under the LFC 2020, he explained.
This difference is essentially due to “the decline in activity in the hydrocarbons sector and the tertiary service”, adds the minister.
At the end of December 2020, budget revenue reached 5183 billion DA, including an amount of 3788 billion DA of ordinary revenue and 1394 billion DA of oil taxation, i.e. an execution rate of 96% compared to LFC forecasts (5395 mds DA), according to the figures relating to the execution of the LF 2020.
Total budget revenue fell by 1411 billion DA in 2020 compared to 2019, i.e. -21.40%, according to the minister who stressed that the policy of the public authorities aimed to cover management expenses with revenue excluding oil taxation. .
Regarding expenditure, Mr. Fayed pointed out that the general budget expenditure actually executed for the same financial year amounted to 6.902 billion DA, including 5.009 billion DA for operating expenditure and 1.893 billion DA for administrative expenditure. equipment, i.e. an execution rate of 93.62% compared to the expenditure planned under the LFC.
With regard to special Treasury accounts, he specified that they had recorded a negative balance of Da 515 billion at the end of 2020, once morest Da 1,330 billion in 2019.
Regarding the evolution of the main macroeconomic and financial indicators for the 2020 financial year, the Minister specified that the balance of the trade balance recorded, in 2020, a deficit of 10.6 billion dollars, once morest 6, $1 billion in 2019, an increase in the deficit of $4.5 billion.
Public debt royalties reached, at the end of 2020, 9.604 billion DA, including 9.424 billion DA for the domestic debt and 180 billion DA for the external debt.
In its report on the text of the law, the Economic and Financial Affairs Committee of the Council of the Nation recommended continuing the efforts made to “accelerate” the pace of digitization of the various services of the finance sector, while continuing the actions aimed at guaranteeing tax recovery with a view to achieving tax justice and purifying the nomenclature of public facilities.
The commission also recommended ensuring that the various public administrations take over the recommendations “issued by the Court of Auditors, especially since many recommendations are repeated each year”.
In the same context, the commission recommended the continuation of efforts aimed at training all the parties in the field of the execution of financial operations, in accordance with the new budgetary engineering provided for by the new organic law n 15-18 relating to the laws of finance.
