Algeria: Finance minister sounds the alarm over drying state finances

The Algerian Finance Minister debunked the government over the country’s finance following the crash of global oil, noting that the situation is dire and that it is pointless to lie.

Abderrahmane Raouya, during an improvised press conference in capital Algiers Wednesday, confirmed that the state finances have drastically dwindled, TSA reports.

The North African country has seen its resources affected after the oil prices have plunged across the globe due to low demand as the lockdown because of the novel covid-19 reduced economic activity worldwide.

The country’s national budget depends heavily on oil and gas revenues, which account for 97 per cent of total sales abroad.

The current national budget was built on a price of $50 a barrel at a time benchmark international crudes are trading at their lowest in about two decades. The country’s crude oil, Saharan blend, dropped and is currently sold at around $11.72 per barrel.

The President, though appearing confident in his cabinet’s ability to rise to the challenge, in March however ordered a 30 per cent cut in government spending and delay into some non-vital projects.

Expecting a budget deficit at about $12 billion, Algeria seeks to fill the gap by ramping up tax collection.