Algerian 2027 Finance Law priorities

The Algerian government has outlined the priorities of the 2027 Finance Law (PLF) project, which includes subsidies for essential goods, the creation of budget posts, and support for social sectors. This comes amid rising food prices and high youth unemployment.

Social transfers in 2027

The government plans to allocate 2414.15 billion dinars (17.7 billion $) to social transfers in 2027 as part of its policy to support purchasing power and protect households. This amount is included in the 2027 PLF project, presented on Monday, November 2, by the Minister of Finance, Mohammed Lamine Lebbou, before the National People's Assembly.

Support for essential goods

Out of this amount, 717.7 billion dinars will be allocated to the support and stabilization of prices of essential goods and widely consumed products. The text also provides for the creation of 125,675 budget posts and the continuation of public support for the health, education, and housing sectors, as well as the funding of collective facilities.

Rising prices and employment challenges

These measures are being implemented as the rise in prices continues to weigh on household purchasing power. According to the National Statistics Office (ONS), food prices increased by 9.54 % between August 2025 and August 2026. During the same period, prices for transport and communication increased by 1.59 %.

High youth unemployment

The employment situation is another challenge for the authorities. According to estimates by the World Bank, based on data from the International Labour Organization (ILO), the unemployment rate in Algeria was 11.6 % in 2025, while that of young people aged 15 to 24 years reached 29.4 %.

Purchasing power support

To support purchasing power, the government has notably increased the guaranteed minimum national wage (SNMG) from 20,000 to 24,000 dinars starting January 2026. The unemployment allowance has also increased from 15,000 to 18,000 dinars.

Social protection program

These measures add to a program launched in September 2025 with the United Nations to modernize the national social protection system, improve coordination of existing mechanisms, and ensure the sustainability of their funding.

2027 PLF budget details

Budgetary balances under constraints Presented as an instrument aimed at reconciling social support, growth, and public finance management, the 2027 PLF provides for budget revenues of 9,251.1 billion dinars, of which 6,598.8 billion come from ordinary taxation. Revenue forecasts from hydrocarbons are based on a reference price of 60 dollars per barrel, while macroeconomic projections assume 70 dollars.

Economic growth and expenditures

Budget expenditures are estimated at 17,882.65 billion dinars in payment credits. The government expects an economic growth of 4.2 % in 2027, following an estimated growth of 4.3 % in 2026. The non-hydrocarbon sector is expected to contribute to this dynamic, with an expected growth of 4.8 % in 2026.

Infrastructure and economic diversification

The project also provides for the continuation of several structural investments, including the exploitation of the Gara Djebilet iron deposit, the development of the integrated phosphate project, and the construction of the railway line connecting Algiers to Tamanrasset. These projects should contribute to economic diversification and support non-hydrocarbon activities.