Budget approved along with draft action plan and Hydrocarbon Law


The Algerian Council of Ministers chaired by President Abdelaziz Bouteflika yesterday approved the draft budget. There were also further additions around the action plan and changes to the Hydrocarbon law to make it more attractive to investors.

The Communique from the Council of Ministers as published on the Prime Minister’s website states as follows. Please note that this is a translation by us from the original in French:

Government draft action plan

“The draft action plan of the Government focuses on the following main areas:

– Continued improvement of governance to strengthen the rule of law, rehabilitate in a radical way the public service and to promote national cohesion,

– The consolidation of the economic and financial sphere to particularly strengthen the visibility of national development process, improve the investment environment, including through land, continue the modernization of the financial system and increase the efficiency of economic role of the state,

– The development of socio-economic infrastructure including the implementation of housing programs provided by mobilizing all necessary resources and intensification of infrastructure networks,

– The promotion of human development through the continued implementation of the reform of the education sector and training, the fight against unemployment, social development of the State towards categories disadvantaged, a better support for the needs of youth and the consecration of a cultural policy efficiently

– Continuation and revitalization of the moralization of public life.”

2013 Budget

“5. The Council of Ministers also reviewed and approved a draft law on finance law for 2013.

In this context, public expenditure forecast for the year 2013 amounted to 6,737.9 billion dinars ($84.5 bn). Operating expenses amounted to a total of 4,335.6 billion dinars ($54.4 bn). Expenditure in equipment authorizations for programs in 2013 amounted to 1.5901 trillion dinars ($19.8 bn).

Budget revenue amounted in 2013 to 3,820,000,000,000 AD. ($47.9 bn)

In its legislation, the draft Finance Act 2013 provides for a series of measures, including reducing the tax burden and to encourage investment, simplification and relaxation of tax and customs procedures, the fight against fraud tax and fiscal consolidation Trust.

The Finance Bill 2013 contains no new taxes or tax increases or tax.”

Changes to Hydrocarbon Law

“6. The Council of Ministers has considered and approved a draft law amending and supplementing Law No. 05-07 of 28 April 2005, amended and supplemented, relating to hydrocarbons.

This text is designed to help maintain the attractiveness of our country in terms of investment, by adapting its legislation in relation to the evolution of the oil industry, in terms of markets and introduction of new technologies, particularly with regard to the extraction processes.

The amendments that the Council of Ministers has examined mainly introduce provisions to strengthen the country’s supply of hydrocarbons and tax arrangements that would encourage the exploration and exploitation of hydrocarbons in areas not surveyed or requiring the use of complex ways.

These amendments do not apply to deposits currently in production, which remain subject to the tax regime.

The bill also gives the national enterprise SONATRACH exclusive right of transportation of oil by pipeline and guarantees majority in partnerships, both in production and in the processing of hydrocarbons.

Following the debate, the President was keen to stress the need to intensify efforts in exploration across the national mining and mobilizing other sources of energy, including renewable energy.

“However, our priority remains focused on the diversification of our economy and the expansion of our production system, the only guarantor of sustainable wealth creation,” concluded the President.”

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