ALGIERS- Minister of Finance Aymane Benabderrahmane said, on Wednesday in Algiers, that the Government works to diversify the economic development sources through the recourse of non-hydrocarbon revenues. New measures aiming to ensure efficient public expenditures are also planned as part of the finance bill 2021.
During a plenary session devoted to the answers to the questions of the People’s National Assembly (Lower House) members on the Finance Bill 2021, the minister said that the “Government works to execute an action plan to diversify the financing sources in a bid to end dependence on current sources of financing and will strategically use public-private partnership to create a return to middle term investment.”
The plenary session has been chaired by Speaker Slimane Chenine, and attended by members of the Government.
Regarding the public-private partnership (PPP) mechanism aimed at the creation and management of public structures through private financing versus the operating income, the ministry is working to prepare a bill governing the mechanism and explains its modalities.
The procedures for diversifying financial resources also include “reforms to developing and improving Islamic finance and insurance products, revitalizing the Algiers Stock Exchange, reigniting the banks’ role in supporting investment and companies and opening the capital of public banks as well as creating new private banks,” added the minister.
However, a new approach has been adopted in the short-term budgetary planning of capital expenditure (2021-2023) which covers “the control and rationalization of public expenditure through the adaptation of future equipment programs through an economic rationality while taking into account the financial capacities of the country.”
== Capital budgeting: priority for ongoing projects ==
In this regard, the Finance minister has revealed that priority has been given to completing projects on time and according to estimated costs.
New programs will also be suspended in case of absolute necessity, announced Benabderrahmane, adding that approvals from the Government will be requested for the programs meeting the requirements of “efficiency.”
However, the government works to maintain the stability of the national economy’s foundations and boost economic recovery in order to achieve a 4%growth rate in 2021, through the efficient use of available financial resources and the launch of structuring investment projects that will contribute to the creation of wealth and jobs.
Regarding these new projects, the minister said that that the procedures related to several large projects are nearing finalization, including El Hamdania port, the zinc complex in Bejaia and the phosphate complex in eastern Algeria, which are projects capable of creating more than 200,000 jobs over the next five years.