Between Covid-19, the plunge in oil prices and social tensions, Algeria falters. With a barrel of brent at 26 dollars, four times lower than in 2014 and 60% lower than the prices in early January, government revenues, which mainly come from hydrocarbons, have melted.
The crisis is getting worse and there is no longer any question of living on the same footing. The government therefore announced on Sunday drastic cuts in its spending. " The operating budget of the state and related institutions " will be reduced " by 50%, " said, without further details, the services of President Abdelmadjid Tebboune.
Read also: The health danger impacts Algeria at the worst time
But, to avoid stirring up the social discontent that has been brewing for more than a year, the government is also multiplying gestures towards the less wealthy. On June 11, he will raise the minimum wage by 11%. This will drop from 18,000 to 20,000 dinars (142 euros) and income tax will be abolished for Algerians who receive a salary below 30,000 dinars
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