Home News COVID-19: Algeria cuts budget, increases minimum wage

COVID-19: Algeria cuts budget, increases minimum wage

The Algerian government decided Sunday to reduce the state budget by half due to a financial crisis caused by the global collapse in oil prices and worldwide coronavirus lockdowns.

The government has decided to reduce the budget by “50 percent” for this year, President Abdelmadjid Tebboune’s office said in a statement.

Despite this huge reduction, the government also agreed at a cabinet meeting to increase the minimum wage from 18,000 dinars ($140) per month to 20,000 dinars, while income tax will be abolished for those earning 30,000 dinars or less, the statement said.

The government also postponed from Sunday until 10 May consideration of a finance law, which seeks to frame a response to the coronavirus pandemic.

A collapse in hydrocarbon prices this year — caused by plunging demand due to societal lockdowns designed to combat the spread of the virus and exacerbated by a brief price war between key players Russia and Saudi Arabia – is putting ever greater pressure on Algeria’s external accounts.

Even before this year’s crisis took hold, Algeria’s foreign exchange reserves had fallen to $62 billion at the end of 2019, from $180 billion in 2014.

The draft law factors in a plunge in oil receipts this year to $20.6 billion, compared to the $37.4 billion previously anticipated.

Tebboune on Friday ruled out approaching the IMF for a bailout, contending that “accumulating debt harms national sovereignty” when it is owed to foreign institutions.

He said he preferred to rely instead on domestic borrowing.

Source: PUNCH NEWS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Hotbillz releases single on digital platforms

Ebuka Matthew Igbokwe better known as Hotbillz, is set to release his single...

Koloflow illuminates music scene with Sleeper mixtape

Nigerian hip hop act, Aroloye Samuel Ayomide aka Koloflow has released his much...

Messi, Ronaldo out of final shortlist for UEFA award

Lionel Messi and Cristiano Ronaldo have been left off the final shortlist for the UEFA Men’s Player...

Catch EPL, La Liga, Serie A matches on DStv, GOtv

This weekend, subscribers of DStv and GOtv will have the best football action...

Tokyo 2020: Athletes to undergo COVID-19 tests on arrival

Joe Apu with agency report Ahead of the now postponed...

Ndidi out of CIV, Tunisia friendlies

Leicester City midfielder, Wilfred Ndidi has been ruled out of Nigeria’s friendlies against...

[Mixtape] DJ LAWY – SHAYO ft 2Ways – Nawa4u.com

Here is another collection of hits from the superstar Dj DJ Lawy alongside SHAYO Mixtape ft the shayo master himself (...

[MUSIC] SHONKEY – AIYE | Nawa4u.com

Amazing super talented artist SHONKEY is here again with a brand new hit single titled "AIYE"... dnt sleep on it cop yours...