Algerian President Approves Budget with Gaping Deficit

Tebboune returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget. (AFP)
Tebboune returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget. (AFP)
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Algerian President Approves Budget with Gaping Deficit

Tebboune returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget. (AFP)
Tebboune returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget. (AFP)

Algerian President Abdelmadjid Tebboune on Thursday approved a 2021 budget which foresees a deficit of around 14 percent of GDP, the presidency said, as the oil-dependent country grapples with economic woes.

Algeria's economy has been clobbered by tumbling crude prices, a liquidity crisis, inflation, and the coronavirus pandemic which has brought many economic sectors to a standstill.

Africa's third biggest oil producer has also faced negative growth, with the International Monetary Fund forecasting that its economy will shrink 5.2 percent this year and that it will have one of the region's highest budget deficits.

Oil and gas represent around 90 percent of Algeria's total exports, and it uses the resulting revenues to subsidise fuel, water, health care, housing and basic goods.

Earlier this year Tebboune acknowledged the economy's "vulnerability" due to its failure for decades to diversify its oil dependent economy.

The budget Tebboune approved on Thursday, after it was passed by the two chambers of parliament, forecasts a deficit of 2,700 trillion dinars (around $20.4 billion, 17.6 billion euros), or 14 percent of GDP.

Furthermore, its hard currency reserves have dropped from more than 162 billion euros in 2014 to less than 57 billion euros late last year.

Tebboune has already ruled out seeking loans from the IMF or other international financial agencies, but pledge to launch an economic recovery plan.

The president returned to Algeria on Tuesday after a two-month absence in Germany, where he received treatment for Covid-19, just in time to sign off on the 2021 budget.

Algeria has recorded just shy of 100,000 cases of the novel coronavirus and 2,756 deaths.



FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.