Algerian PM Announces Drafting of Complementary Finance Law

A Complementary Finance Law 2020, intended to allot necessary funding for the urgent and priority actions is being currently drafted, announced Prime Minister Abdelaziz Djerad.

"The Government is currently elaborating the Complementary Finance Law 2020 in a view to allot the necessary funding to the urgent and priority actions," Djerad said Monday in an interview to APS on the sidelines of the installation of the new president of the National Economic and Social Council (CNES).

The draft Complementary Finance Law 2020 would provide for the cancellation of "discriminatory" measures included in the Finance Law 2020, said the Premier.

Djerad also announced that, as part of the Complementary Finance Law 2020, the government plans to introduce tax incentives for companies as well as legal basic measures to streamline and improve business climate and revive investment.

On a question about the impact of the plummeting oil prices on the Government’s development policies, the Premier reassured that the State envisages to keep its commitments in terms of development financing, despite the impact of coronavirus outbreak on oil markets. He said that the Government will however pursue "prudent" management of the public financing.

"Facing the uncertainties weighing on the world economic outlook due to the coronavirus outbreak and falling oil prices, the government is working to manage the country's finances prudently and rationally with, as a priority, maintaining the State commitment in financing development," said Djerad.

According to the Premier, this vision constitutes the framework of the operational reference of the implementation of the Government’s action plan to curb the oil prices fall, through the reduction of the resources waste, the rationalization of operating and equipment expenses and the gradual establishment of a diversified economy based on wealth creating national company as its driving force.

In this regard, Djerad said that the economic situation has known over several weeks a "strong deterioration," impacted by coronavirus outbreak.

"This situation has a negative impact on our foreign exchange resources and accentuates the already pressing budgetary constraints, which imposes on us the adoption of cyclical and structural measures with a view to achieving the recovery of the financial situation," he explained.

These measures are meant to reinforce the exchange reserves by stopping their fall and revive the economic growth by boosting value added investments likely to address the situation of the balance of payments, added the Premier.

"The gradual return to macroeconomic balances must also be a permanent objective, by rationalizing public spending, targeting subsidy policies and eliminating sources of waste and spending without any significant impact on improving the living conditions of our populations," he said.