Algeria squanders gas wealth to buy social peace, fatten army

Algeria is about to approve the largest budget in its history and in Africa, most of it dedicated to maintain cash-handouts on which its social peace depends and increase spending on the army.

Some 125 billion dollars will be budgeted by the government this year, as the country lacks any significant investment or economic project that would pull it from the resource trap.

At least 43 billion dollars will be spent on the inflated public payroll. The civilian façade of the Algerian military regime has been increasing wages to gain a new support base, while worsening the inflation outlook in the country.

Algeria is also planning to spend 25 billion dollars on defense, almost on par with Israel, a state at war.

Algeria’s oil and gas exports, the country’s lifeline, have been dropping to less than 50 billion dollars since 2023.

Meanwhile, Algeria continues to struggle to contain malaria in its south, while queues for basic goods become a daily concern for ordinary Algerians, hit by inflation, unemployment, and autocracy.