Algerian state budget affected by low oil price
The balance of the Algeria state budget requires oil prices to be above 110 dollars a barrel, said the Bank of Algeria on Sunday, warning against continued dependence on energy revenues.
Source : https://www.marocafrik.com/english/Algerian-state-...
Now, a balanced budget requires levels of oil prices above 112 dollars a barrel while the total budget revenues remain heavily dependent on those very volatile hydrocarbons" reads the chapter "Public Finance" of the report of the Banque d'Algerie on economic and monetary developments in 2011, presented by Mr. Djamel Benbelkacem, Chief Advisor to the Central Bank.
The average price per barrel of oil Algeria (Sahara Blend) was 112 dollars in 2011.After going down to below 80 dollars a barrel in London, crude oil prices rebounded seven dollars on Friday, ending the week nearly 85 dollars a barrel in the surprise the EU summit in Brussels last weekend.
Asked by reporters about the fate of public expenditure in cases where a barrel of oil dropped to a level similar to thatof 2009 (around $ 60), Mr. Benbelkacem replied: "In this case we will use the FIR (Fund control of resources) which willcover, as appropriate, ten years of budget deficit ".
In late 2011, the balance of the FIR fed from the difference between the recovered oil tax and bugeted oil taxes budgeted,which was 5381.7 billion AD, against 4842.8 billion AD at end-2010, recalled Mr. Benbelkacem.
These savings represents 37.4% of GDP, 94.4% of total revenues of the state and 93.9% of public spending, according to the report which considers that "the changing structure of budget revenues is a key additional vulnerability to the new structure of budgetary expenditures. "According to statistics from the ABS, hydrocarbon revenues were up 37% at 27.7% of GDP in 2011 against 24% in 2010 from 2.905 billion AD at 3.979 billion dinars.
Oil taxes in 2011 reached two and a half times the tax budgeted at a reference price of $ 37 per barrel of oil, against 1.9 times in 2010. Reported total revenue, revenue from oil accounted for 69.8% against 66% in 2010, the report notes. The same revenue covered 69.4% of budget expenditures in 2011 against 65% in 2010.
And while in 2010 these revenues accounted for 109.3% of operating expenses, they were worth 104.8% in 2011 and the data revealed once again emphasizes the Banque d'Algerie(BA) that "the vulnerability of public finances to possible external shocks has increased even further in 2011 ".
The "sustainability" of public finances in the medium term and should emerge as "strategic goal" for Algeria, the BA recommended.In 2011, the state budget recorded, , "a lightweight" real budget deficit, based on an Algerian oil price of 112 US dollars, estimated at 28 billion dinars against 74 billion AD in 2010 and 570, 3 billion AD in 2009, according to the report.
Algeria whose main exports are hydrocarbons is vulnerable to low oil prices.
The average price per barrel of oil Algeria (Sahara Blend) was 112 dollars in 2011.After going down to below 80 dollars a barrel in London, crude oil prices rebounded seven dollars on Friday, ending the week nearly 85 dollars a barrel in the surprise the EU summit in Brussels last weekend.
Asked by reporters about the fate of public expenditure in cases where a barrel of oil dropped to a level similar to thatof 2009 (around $ 60), Mr. Benbelkacem replied: "In this case we will use the FIR (Fund control of resources) which willcover, as appropriate, ten years of budget deficit ".
In late 2011, the balance of the FIR fed from the difference between the recovered oil tax and bugeted oil taxes budgeted,which was 5381.7 billion AD, against 4842.8 billion AD at end-2010, recalled Mr. Benbelkacem.
These savings represents 37.4% of GDP, 94.4% of total revenues of the state and 93.9% of public spending, according to the report which considers that "the changing structure of budget revenues is a key additional vulnerability to the new structure of budgetary expenditures. "According to statistics from the ABS, hydrocarbon revenues were up 37% at 27.7% of GDP in 2011 against 24% in 2010 from 2.905 billion AD at 3.979 billion dinars.
Oil taxes in 2011 reached two and a half times the tax budgeted at a reference price of $ 37 per barrel of oil, against 1.9 times in 2010. Reported total revenue, revenue from oil accounted for 69.8% against 66% in 2010, the report notes. The same revenue covered 69.4% of budget expenditures in 2011 against 65% in 2010.
And while in 2010 these revenues accounted for 109.3% of operating expenses, they were worth 104.8% in 2011 and the data revealed once again emphasizes the Banque d'Algerie(BA) that "the vulnerability of public finances to possible external shocks has increased even further in 2011 ".
The "sustainability" of public finances in the medium term and should emerge as "strategic goal" for Algeria, the BA recommended.In 2011, the state budget recorded, , "a lightweight" real budget deficit, based on an Algerian oil price of 112 US dollars, estimated at 28 billion dinars against 74 billion AD in 2010 and 570, 3 billion AD in 2009, according to the report.
Algeria whose main exports are hydrocarbons is vulnerable to low oil prices.
Source : https://www.marocafrik.com/english/Algerian-state-...