BUDGETARY REFORM IN ALGERIA UNDER THE ORGANIC LAW NO. 18-15: TOWARDS A RESULTS-ORIENTED FINANCIAL GOVERNANCE

Laabassi Mohamed

doi:10.31435/ijite.4(52).2025.4497

Laabassi Mohamed Faculty of Economics, Commerce and Management Sciences, University of Alger 3, Algeria

DOI: https://doi.org/10.31435/ijite.4(52).2025.4497

Keywords: Budgetary Reform, Organic Law No. 18-15, Public Financial Management, Performance-Based Budgeting, Fiscal Governance, Algeria

Abstract

This paper examines the dynamics of budgetary reform in Algeria following the adoption of Organic Law No. 18-15 on Finance Laws, which represents a cornerstone in the modernization of public financial management. The study aims to analyze the transition from a resource-based budgeting system to a results-oriented framework, emphasizing efficiency, transparency, and accountability. Through a conceptual and analytical approach, the paper highlights how this reform seeks to enhance fiscal discipline, performance-based management, and the alignment of budgetary practices with international standards such as the OECD framework for performance budgeting. The findings suggest that while the organic law provides a robust legal foundation for reform, its effective implementation remains constrained by administrative inertia, institutional rigidity, and limited digital integration. The study concludes with policy recommendations for deepening fiscal governance through capacity building, digitalization, and performance evaluation mechanisms.

References

Allen, R., & Tommasi, D. (Eds.). (2001). Managing Public Expenditure: A Reference Book for Transition Countries. Paris: OECD Publishing.

Boukhelfa, A. (2021). Les Défis de la Mise en Œuvre de la Gestion Budgétaire par Objectifs en Algérie. Revue Financière et Comptable, 3(1), 55–72.

Bouzidi, S., & Taleb, D. (2017). The Impact of Interest Rate and Money Supply on the Real Exchange Rate: A Case Study of Algeria (1994–2016). Revue des Politiques Économiques, 5(3), 41–60.

Caiden, N., & Wildavsky, A. (2004). Planning and Budgeting in Poor Countries. New Brunswick, NJ: Transaction Publishers.

Hood, C. (1991). A Public Management for All Seasons? Public Administration, 69(1), 3–19. https://doi.org/10.1111/j.1467-9299.1991.tb00779.x

International Monetary Fund (IMF). (2018). Fiscal Transparency Evaluation: Algeria. Washington, DC: IMF.

Ministry of Finance Egypt. (2021). Budget Transparency Portal – Annual Fiscal Performance Report. Cairo: Government of Egypt.

Ministry of Finance Algeria. (2022). Rapport sur la Mise en Œuvre de la Loi Organique 18-15. Algiers: Ministère des Finances.

North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.

Organisation for Economic Co-operation and Development (OECD). (2007). Performance Budgeting in OECD Countries. Paris: OECD Publishing. https://doi.org/10.1787/9789264034051-en

Organisation for Economic Co-operation and Development (OECD). (2015). Budgeting Practices and Procedures in OECD Countries. Paris: OECD Publishing.

Organisation for Economic Co-operation and Development (OECD). (2019). Budgetary Governance Review of Algeria. Paris: OECD Publishing.

Pollitt, C., & Bouckaert, G. (2017). Public Management Reform: A Comparative Analysis – Into the Age of Austerity (4th ed.). Oxford: Oxford University Press.

Robinson, M., & Brumby, J. (2005). Does Performance Budgeting Work? IMF Working Paper No. 05/210. Washington, DC: International Monetary Fund.

Saidi, M. (2020). La Réforme Budgétaire en Algérie et les Enjeux de la Loi Organique n°18-15. Revue Algérienne d’Économie et de Management, 7(2), 112–130.

Schick, A. (2003). The Performing State: Reflection on an Idea Whose Time Has Come but Whose Implementation Has Not. OECD Journal on Budgeting, 3(2), 71–103.

World Bank. (2020). Egypt: Public Financial Management Reform Strategy 2016–2022. Washington, DC: The World Bank.

World Bank. (2023). Public Expenditure and Financial Accountability (PEFA) Assessment – Algeria. Washington, DC: The World Bank