Algeria Budget 2012
The main intention behind this decision was to prevent a popular revolution that happened in neighboring countries - Egypt, Libya and Tunisia - and deal adequately with the complaints of common people. The government had increased salaries of public sector employees and raised subsidies paid on primary foodstuffs.
It seems that the additional spending has been fruitful with the number of anti-government protests coming down in the recent months. In 2012 the price of per barrel of oil is going to be $37 in Algeria and this has played a major role in formulating the budget.
Highlights of Algeria Budget 2012:
- It is expected that in 2012 budget deficit will amount to 25.4 percent of the GDP. In 2011 budget deficit has been projected to account for 34% of the Gross Domestic Product.
- In the current fiscal the growth rate has been estimated at 4 percent and in 2012 it is expected to go up to 4.7 percent. The main reason for this growth, according to the finance minister Karim Djoudi, is the good performance of the oil sector, a critical component of the national economy.
- In 2012, as per the forecasts of the draft budget, the rate of inflation will be 4 percent as compared to 3.5% in 2011 fiscal.
- Approximately 74 billion Euros or 7,428 billion dinars have been earmarked for expenses in the 2012 Algeria budget. Majority of this sum will be spent in social policies and the investment sector.
- Several steps will be taken to improve the investment sector and the way corporate taxes are structured.
- The 2012 budget will look to bring down social divisions and foster economic growth.
- No taxes will be increased in the 2012 budget.
- Approximately €1.3 billion will be provided for assisting the agricultural sector, lowering the interest rates and improving the small and medium sized enterprises in the North African country.
- 50% more fund will be allocated to Algeria’s pension reserve funds from the revenues earned through oil taxes.
- The supplementary finance law enacted in 2011 fiscal will be adopted by the 2012 budget as well. This law contains several measures for creating small businesses across the country and support employment.
- The imports are supposed to see a minor increase in 2012, going up from 40 billion US dollars in 2011 fiscal.
- Import of used clothing will be banned from 2012 onwards. The sector for participatory social housing will stay out of bounds in the 5 years.
- The revenues estimated for 2012 budget are 3455.6 billion dinars.
- It is expected that 1894 billion DA will be received from tax revenues in 2012 fiscal and 1561.6 billion DA will be generated through oil taxes. At least 1/6th of expenditure will be spent for national unity and security. This will amount to 1300 billion Dinars.
Expectation from Algeria Budget 2012:The basic aim of the Algeria budget 2012 is to properly carry out the five year development program that runs till 2014 fiscal. It is also expected to support investment in a big way.
The 2012 budget will look to consolidate Algeria’s position in the global market. The new budget contains several measures that are beneficial for the business enterprises and have been decided after a meeting between government, workers union and the workers themselves.