Latest info on Algeria Gov Spend, Public Purchasing, Govt Budget & Public Spending


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Algeria, officially the People's Democratic Republic of Algeria, is the leader in the Maghreb and third most important economy in the MENA region.

The Algerian government implemented social policies in line with the United Nations Sustainable Development Goals, which resulted in to 20% poverty reduction in the past two decades; a significant achievement and only a handful of African countries could achieve.

Algeria is a founding member of Arab Maghreb Union and active member of various International organizations like: African Union, the Arab League, OPEC, the United Nations, African Development Bank (AfDB), International Fund for Agricultural Development (IFAD), International Monetary Fund (IMF), Inter-American Development Bank Group (IDB, IADB), United Nations Conference on Trade and Development (UNCTAD), World Trade Organization (WTO)


All About Public Procurement in Algeria

Money spent on government programs is referred to as Public Procurement. There are various definition of government spending or meaning of public expenditure. But in nut shell it is the amount which government entities like ministries, corporations, defence railways etc spend in procuring products/goods, services and works for the use of public at large.


It is imperative for any govt to curtail wasteful government spending and bring efficiency and transparency in its procurement function. Increased government spending through public purchasing and public sector procurement necessitated that expenditure department follow the rules and give equal opportunity to all bidders. The most important step in Public procurement is floating public tenders for optimal competition and awarding public contracts with the ultimate objective of getting the best value from tax payers money.

 

Now a days government spending on infrastructure is increasing day by day with major thrust on green public procurement and sustainable public procurement.

 

Algeria Government Spend / Expenditure:

Government expenditure / spend form a major component of Algeria govt budget. Public spending by Algeria government is generally towards social causes and infrastructure building. There are various types and example of Algeria government expenditure or spending. Generally, Algeria government expenditure / spending on healthcare, education, defence and infrastructure takes the major chunk from the budget. The other types of government expenditure are in the area of salaries, MRO, social benefits to employees etc.

 

Algeria Government Spending as a Percentage of GDP

A substantial percentage of Algeria government budget is used through public expenditure. Algeria government typically spend 20.5 % of the GDP through Public Procurement. Below are estimated figures of GDP from IMF for the year 2020 and 2021 (in Million USD):

 

Year

2020

2021

GDP (Nominal)

193056

199917

GDP (PPP)

638363

691364

GDP (Nominal) Per Capita

4363

4437

GDP (PPP) Per Capita

16091

16415

 

If we take 20.5% of the GDP on PPP basis, the Public Procurement spend/expenditure by Algeria Government comes to approximately 130 Billion USD in 2020.


Procurement Methods Of Algeria Government:

In almost all the countries the basic principles of public procurement are the same. There are various methods which are employed in the procurement. The method to be uses on various factors like: The monetary value of procurement, capacity available within the country, funding source, urgency of the procurement etc. Couple of popular methods used ate: public bidding or open tendering, restricted tendering, one/two/three envelope tendering etc.

To bring better efficiency in public procurement, government are embracing e procurement system.

Below are the 3 main types of procurement methods, which are used by the Government of Algeria:

 

Open tender call (“Appel d’offres ouvert”)

Open tender call with minimum capacity requirements (“Appel d’offres ouvert avec exigence de capacités minimales”)

Restricted tender call (“Appel d’offres restraint”)

 

Algeria Public Procurement Acts and Laws:

 

Like any other country, the Procurement process in Algeria is well defined and regulated by laws and acts.

 

The Public Procurement in Algeria is governed by the Public Procurement Regulations (PPR) which was passed through the Presidential decree N° 15/247 on 20Th September 2015. As per the law all works and supply contract above 12 Million DZD and Consultancy and services contracts above 6 Million DZD falls under the purview of the Public Procurement Regulations.

 

Algeria Public Procurement Performance:

Public procurement plays an important role in achieving economic, environmental, technological, and social goals of any country. Though, over a period of time the public expenditure has increased substantially but the legal and regulatory environment could not match the pace. The resultant gap is restricting the ability of companies in private sector to do business with the government and thus bringing issues related to transparency and efficiency in the Public Procurement function.

 

Not to mention, Public Procurement plays an important role in the development of a vibrant and sustainable private sector.

 

In order to bridge the gap, the World Bank has conducted a study- Benchmarking Public Procurement 2017 in which it has assessed the Public Procurement regulatory system in more than 180 countries.

 

Algeria stands at below:

 

SN

Parameter

Algeria Score

1

Needs assessment, call for tender, and bid preparation score

42

2

Bid submission score

23

3

Bid opening, evaluation and award score

43

4

Content and management of procurement contract score

73

5

Performance guarantee score

34

6

Payment of suppliers score

67

 

 

Ease of Doing Business Score:

In the above section, we discussed about the performance of governments as procurer. In this section we will discuss about the performance of the governments in providing conducive business environment. For a growing and vibrant economy, the role of a heathy private sector can bot be ignored. Effective regulations stimulate SME sector to innovate, grow and move from an informal economy to the formal economy.


The World Bank in its 16Th Doing Business 2019 report have measured the regulations that enhance business activity and those that constrain it. The report covers 190 economies and focus on the regulations affecting 11 areas of the life of a business.

According to the Doing Business Report 2019, Algeria ranks at 157 position with overall score of 49.65


Flag of Algeria

Flag of Algeria

Emblem of Algeria

Emblem of Algeria

Capital Algiers
ISO 3166 Code DZ
Population 39,500,000
Area, Sq KM 2,381,740
Currency Dinar
Official Language Arabic
GDP, Billion USD 2,10,183
GDP Growth Rate, % 4.0
Inflation, Avg CP, % 4.0
Interest Rates, %
Unemployement Rate, % 9.39
Exchange Rate, 1 USD Equals 98.33
International dial code 213
Time ZONE GMT
Internet TLD .dz