HIBAPRESS
Disappointment is escalating in the Algerian street with the approach of the implementation of the Finance Law for the year 2026, after it became clear that the ruling military regime has again decided to direct the largest part of the state budget towards the defense sector, at the expense of vital social and economic sectors.
Spending billions of dollars on armament
This step reflects the military's priority of spending billions of dollars on armament instead of confronting the accelerating collapse of purchasing power, which has exhausted millions of Algerians due to inflation and the decline in the value of the local dinar. The Algerian families with limited incomes – which are the overwhelming majority of the population – find themselves today unable to cover their basic needs, in light of a suffocating wave of high prices that has affected the prices of food and consumer goods. The deterioration of purchasing power is no longer just a number in official reports, but has turned into a daily tragedy that exposes the failure of the regime in managing economic and social affairs. Phenomena of debt, reliance on small loans, and even emigration in search of a livelihood, have become familiar phenomena in Algeria. Experts believe that the fundamental reason for this chronic crisis is the complete dependence of the national economy on oil and gas revenues, which represent about 97 percent of the national income, in the absence of any real policy to diversify sources of production or encourage non-oil sectors. Financial risks await Algeria Despite the repeated official slogans about "reform" and "economic diversification", the reality confirms that Algeria is still a prisoner of a fragile rentier model, which exposes it to serious financial risks with every decline in energy prices. In contrast, regional comparison reports indicate that the wage scale in Algeria is among the weakest in the Arab world, as the average monthly income does not exceed $300 only, a figure that puts it in the same category as Syria and Egypt, compared to rates exceeding $2,000 in other Arab countries. This vast difference reflects the deep collapse in the purchasing power of the Algerian citizen, amid official disregard for reviewing wages despite the rapid economic changes. The decline of the Algerian dinar. Observers confirm that the official figures on inflation "beautify the reality" and do not express the truth of the situation, because they rely on a narrow basket of subsidized materials, while independent studies show that the real prices of dozens of goods and services have increased by rates that far exceed the rates announced by the government. The deterioration of the Algerian dinar against foreign currencies, especially the euro and the dollar, also continues, which increases the cost of living and weakens purchasing power day after day. In light of these circumstances, Algerians are living under the impact of increasing social anxiety, as the crisis is no longer limited to the poor groups, but has extended to the middle class, which has begun to gradually lose its position. However, the military regime continues to adhere to its old financial policies, as the new finance law project came as an extension of a rigid spending path, which focuses on collecting taxes and deductions from wages as the main source for the state treasury, without any real vision to revive the economy or improve the living of citizens.
