Algerian Prime Minister Abdelaziz Jarrad acknowledged today, Tuesday, that the country is living in a difficult economic situation due to a financial crisis and the erosion of exchange reserves as a result of the low oil revenues that Algeria depends entirely on its internal budgets.
Introducing his government’s action plan to parliamentarians, Jarad said: “My duty and the sensitivity of the circumstance make it imperative for us to inform you of the reality of the economic and financial situation,” and revealed that “the financial situation is fragile and linked to the fluctuations of the global oil market,” noting that the internal public debt reached 45%.
Reduced exchange reserves in the public treasury
The reserves of exchange in the public treasury in Algeria decreased to 62 billion dollars at the end of last January, according to Governor of the Bank of Algeria Ayman Bin Abdel Rahman, last week, and the budget law for 2020 expects this reserve to shrink to 51.6 billion dollars by the end of this year, 2020.
Avoid raising prices
Despite the difficult financial situation, the government avoided the implementation of any increases in the prices of food supplies that are highly consumed, and Jarad stressed that the government decided not to increase the prices of these supplies and to keep the subsidies directed to them, such as bread, milk, etc.
and the government decided to apply for a tax exemption on wages and incomes that are less than 30 thousand Dinars (approximately $ 220) in support of people with low incomes.
Aim to reduce unemployment
The Algerian official confirmed that his government will work to reduce the unemployment rate to 10%.
He also revealed that the government has taken other measures to encourage agricultural and animal production to achieve food security and to encourage exports outside of hydrocarbons with a view to pushing industrialists and craftsmen to export local production, by providing tax facilities and concessions, and encouraging businessmen to create jobs and reduce tax burdens and encourage domestic and foreign investments, And the development of digitized management to combat tax evasion, and enhance the work of the stock exchange and the development of banks specialized in project financing and electronic payment.
Jarad called for not despair about the economic and social situation, because today’s generation is able to overcome the crisis and has pledged to work to get the country out of the difficult political and economic stage towards a new stage, while Parliament is discussing the government’s action plan during the next two days before ratification and direct implementation if it gets the approval of the parliament deputies.