By Tarek Amara
TUNIS (Reuters) -Algeria plans to reduce its budget deficit by 35.5% to $40 billion in 2026, or 12.4% of GDP, its budget bill shows, even as it adopts a record-high spending plan meant to boost economic growth and support household incomes.
The 2026 budget package, expected to be passed by parliament and seen by Reuters, projects total expenditures of over $135 billion, up from $128 billion in 2025, and $112 billion in 2024.
Despite the increased spending, the government expects the deficit to shrink from $62 billion in 2025 as a result of anticipated growth in non-hydrocarbon sectors such as agriculture, industry and construction.
Algeria, a major gas producer and member of OPEC, is pursuing economic diversification to reduce its dependency on hydrocarbons. While the North African country’s energy sector remains pivotal, the government is investing in various other industries to foster sustainable growth.
The budget is based on an average oil price of $60 per barrel and forecasts economic growth of 4.1% in 2026, compared with 4.5% expected initially in 2025.
Under the draft budget, public sector wages will account for around a third of total spending in 2026, rising by 1.4% to $45 billion.
(Reporting by Tarek Amara; editing by Mark Heinrich)
