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Financial Reporting on Misappropriating DZD152B From the Support Fund-

June 20, 2022

Brokers and intermediaries misappropriated DZD152 billion of public allocations destined to support vulnerable groups and the middle class, according to statements by the General Manager of Budget at the Ministry of Finance, Abdelaziz Fayed. The latter revealed in numbers that rich families benefited from financial subsidies that far exceed those that were allocated to low-income families.

According to the representative of the Finance Ministry, Abdelaziz Fayed, the annual financial evaluation of the social support services showed significant differences in the distribution of financial subsidies granted by the state annually in the context of strengthening social solidarity and protecting vulnerable groups; “The financial grants are distributed in an unfair way between low-income and rich families which benefited from subsidies that exceed those obtained by needy families, as it was equal to 7 times in the field of fuel, for example”, Abdelaziz Fayed explained.

Abdelaziz Fayed confirmed in statements, Saturday, on the sidelines of the parliamentary day organized by the Parliamentary Bloc of the Future Front Party “Al Mostakbal” under the title “Parliament’s Accompaniment of the Policy of Social Support Reform”, that the state seeks, by reconsidering the support system, to achieve justice in the distribution of social benefits, especially about food products, as investigations proved that 152 billion dinars annually allocated to these products were unlawfully seized by intermediaries, “The state seeks, through social and economic support, to strengthen social solidarity and preserve vulnerable groups and people with low incomes”, including what are explicit subsidies by the state that include social transfers and implicit subsidies represented in tax incentives and subsidizing the prices of locally marketed energy products”.

The subsidies, according to the representative of the Ministry of Finance, take two forms: “subsidies directed to support housing, health, retirement, and comprehensive subsidies that represent the state’s support for the prices of basic and food products. The latter, according to Fayed, amounted during the period from 2018 to 2020 between 3900 billion Algerian dinars to 5130 billion Algerian dinars, and the comprehensive subsidies, according to – the speaker – was equivalent to 56% of the total support.

“In 2021, the volume of implicit subsidies amounted to 5131 billion Algerian dinars, equivalent to 23% and comprehensive subsidies equivalent to 62% of the total of these subsidies. During this year, the volume of comprehensive subsidies reached 87%, while the explicit subsidies amounted to 13%, equivalent to a value of 402 billion Algerian dinars, a sum directed to support foodstuffs such as flour and oil”.

The parliamentary day recorded several interventions within the framework of each party’s vision of the social support file, most notably the intervention of the former governor, Bashir Frick, who believes that the biggest obstacle facing the support file is the census of the social groups targeted with targeted, conditioned and direct support.

Al Mostakbal MP made several interventions within the framework of each party’s vision of the social support file, most notably the intervention of the former governor, Bachir Frik, who believes that the biggest obstacle facing the support file is the census of the social groups targeted with conditioned and direct support.

The speaker focused on the importance and role of local groups with their elected officials and administrators, in identifying fragile or semi-fragile groups that need alternative cash subsidies, wondering, “How can this work be achieved, which remains the base and basic reference for state policy in this new initiative?”

echoroukonline