The growing deficit in the general budget of Algeria in light of the global financial and economic crises an analytical Study (2004-2013)

Abstract

The general budget in Algeria has always witnessed a continuous deficit. It is the result of imbalance between the growth of the public revenues and the growth of public spending. The global financial and economic crisis has contributed in deepening this deficit through its direct and indirect negative effects on both sides of the Algerian general budget (revenue and expenditure) . As a result, Algeria has taken set of measures and policies in order to minimize and mitigate this deficit. The aim of this study is to determine the causes of the budget deficit in Algeria and the effects of the global financial and economic crisis on it and then to determine the mechanisms and policies of controlling it. The study has concluded that the budget deficit in Algeria is a structural deficit that continues along the study period due to the increasing expenditure due to the developmental financial schemes, on the other side public revenues were negatively affected by the global financial and economic crisis which moved to Algeria through foreign trade and inflation. Key words: public expenditure, public revenue, the Algerian general budget, the global financial and economic crisis.