Explicit Government Subsidy Policy and Its Impact on the State Budget in Algeria

Abstract

The Algerian Ministry of Finance considers government subsidies to refer to certain forms of assistance provided by the state to individuals as consumers or producers, either directly (explicit subsidies) or indirectly (implicit subsidies), with the aim of alleviating the burden of living costs and achieving income redistribution, thereby contributing to a certain degree of social equity.

Accordingly, this study seeks to evaluate the policy of explicit government subsidies and their impact on the state budget by highlighting the case of Algeria during the period from 1993 to 2021. The study concludes that the current system of explicit subsidies constitutes a significant burden on the state budget.