Algeria’s Council of Ministers has approved the draft Finance Bill for 2026,allocating $25 billion to the army at the expense of economy diversification,infrastructure,and social services.
The country has prepared a budget bill worth a record $135 billion,up from $128 billion in 2025 and $113 billion in 2024. Military spending represents 20.6% of the total budget.
This makes the army the largest receiver of public funds,surpassing even the ministry of finance,which accounts for 20.3% of the budget.
The surge in defense spending continues a trend that began in 2022,when Algeria doubled its military budget despite economic pressures from the COVID-19 pandemic and falling oil revenues.
Defense allocations jumped from an average of $8–11 billion between 2020 and 2022 to over $18 billion in 2023,followed by $22 billion in 2024 and $24 billion in 2025.
The 2026 budget increase comes amid declining hydrocarbon prices,currently hovering between $65 and $67 per barrel,and a projected $40 billion budget deficit,raising questions about fiscal sustainability.
Algeria’s defense budget now far exceeds spending on education (10.7% of the budget),despite the absence of major new security threats. Longstanding regional tensions,particularly with Morocco and in the Sahel,have either stabilized or diminished in recent years.
United News - unews.co.za