Non-traditional financing of budget deficit in Algeria during the third millennium
An analytical evaluative study
Keywords:
Budget Deficit, Structural Deficit, Non-Traditional Financing, Monetary Issuance, Monetary MassAbstract
Between 2016 and 2017, Algeria adopted non-traditional financing methods to manage the budget deficit caused by the 2014 oil price shock, following the ineffectiveness of traditional fiscal policies in meeting the set objectives, which were met with disapproval by economic stakeholders. This approach was necessitated by the depletion of the Revenue Regulation Fund's reserves, previously allocated for public debt repayment during 2000-2005. Since 2006, its function was relegated to supporting the public treasury until 2016. In 2017, the Algerian government initiated a policy of monetary issuance, generating money ex nihilo to finance the state budget, as authorized by order 17/10.
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