President Tebboune Defends Social Spending Policy, Assures Financial Stability Amid Global Budget Constraints

President Tebboune Defends Social Spending Policy, Assures Financial Stability Amid Global Budget Constraints

✍️ BY: Dr. Hana Saada

In his periodic meeting with national media, Algeria’s Head of State emphasizes resilience of the national budget, robust foreign exchange reserves, and steady decline in inflation

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Algiers, Algeria– Friday, July 18, 2025 | In a resolute and detailed address during his regular encounter with representatives of national media, President Abdelmadjid Tebboune offered critical insights into Algeria’s fiscal policies, asserting that the country’s generous social transfers, while weighty, do not jeopardize the state’s financial health.

Tebboune revealed that Algeria allocates approximately $15 billion annually to major social transfers, a policy designed to preserve the purchasing power of its citizens amid shifting economic conditions. While acknowledging that such substantial public spending imposes constraints on state liquidity, the President was categorical: “This will not result in a budget deficit.”

He underlined that Algeria’s fiscal strategy is grounded in pragmatic realism. “No budget in the world is implemented at 100%,” Tebboune stated, implicitly defending the government’s approach to budgetary execution and highlighting the flexible, adaptive mechanisms in place to manage public finances responsibly.

The President pointed to Algeria’s “solid foreign exchange reserves” as a pillar of national economic stability. Though he did not specify the exact figures, his reference to the strength of the country’s reserves was intended to reassure both citizens and economic observers that Algeria retains a safety net capable of absorbing economic shocks.

President Tebboune also addressed the persistent concern of inflation, announcing a decline in the national inflation rate to 4%, a notable improvement that reflects the effectiveness of recent government measures. “The rate will continue to drop,” he predicted, suggesting that further regulatory steps and market interventions are underway to stabilize prices and ease cost-of-living pressures.

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