Economic diversification to counter oil shocks in the Algerian economy An applied study of the diversification model - Hrishman Hervandel –

Abstract

Algeria has adopted various policies to neutralize the volatility and uncertainties of oil prices and revenues on its general budget, namely the adoption of conservative oil prices in the country's fiscal revenue estimates and the establishment of a revenue control fund. The objective of economic diversification, ie diversification of national income sources, Non-oil target declared. Despite these policies, however, oil and its revenues are still overwhelming in GDP and public finances, which has made Algeria offer undesirable negative effects on the public budget. Algeria is therefore facing special challenges in managing its economy and in preparing and designing the public budget, not only because oil prices are volatile and difficult to predict, but also because they have to plan when oil will be implemented, uncertainty about oil revenues and implications for fiscal policy Short and long-term.