Abderrahmane Raouia,   Algerian Minister of Finance Abderrahmane Raouia, Algerian Minister of Finance DZ Breaking

Algeria will Cut Subsidies Featured

Business & Economy / Monday, 12 February 2018 05:48

The Algerian State is set to cut state subsidies in prices for several products could begin to be reduced next year, according to statements made yesterday in Dubai by the 

Algerian Minister of Finance, Abderrahmane Raouia disclosed over the weekend  that  as from next year, prices of several products would be determined by market forces. The decision was taken as part of Algeria’s effort to curb market distortion in the country via the removal of government subsidy on a wide range of goods and services availed consumers in the country.  


Mr. Raouia, confirmed that the proposed reforms a part of government’s decision to decisively rein in on deficit financing of the country’s budget, for it to be able to “balance its books” within the next three to four years. Algeria is in no position to continue with the erstwhile practice of “price capping” a wide range of products and services ranging from electricity to bread and cooking oil, due to revenue shortfalls. There is a growing realisation in the country’s government circles that country must quickly divert shrinking revenue from subsidy payment, for investment in infrastructure needed to stimulated economic growth. The new thinking appears to have been influenced by  falling revenue occasioned by a drastic fall in revenue derived from sales of oil and gas in international markets.

Afrika247

 

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