The trend of public spending policy in influencing some internal economic imbalances In Algeria (2000-2018)

Abstract

    This study attempts to show the trend of public spending policy in influencing some of the internal economic imbalances in Algeria, based on a conceptual presentation of public spending policy and its economic dimensions, and then addressing the path of public spending in Algeria with its current and investment aspects as a fiscal policy adopted during the period (2000-2018). ), leading to a presentation and analysis of the impact of public spending policy in Algeria on some internal macroeconomic imbalances, such as inflation, unemployment, weakness and fluctuation of economic growth. Using the descriptive and analytical method.

     The public spending policy contributed in a positive way to unemployment in the short term, as the increase in public expenditures played a role in absorbing unemployed labor, especially in the construction and public works sector, which provided permanent jobs such as maintenance and operation and temporary jobs such as design and construction, where the number of workers in the sector increased from 650000 workers in 2001 to 1,847000 workers in 2017. As for the impact of the public spending policy on inflation, it was negative and strong, as it contributed to the deepening of this imbalance, and inflation rates rose from 0.3% in 2000 to 5.59% in 2017, as a result of the weakness of the productive system Regarding the impact of the public spending policy on economic growth, it was positive despite its weakness and limitations, as it moved from 2.2% in 2000 to 6.9% in 2003, when launching development projects and increasing the volume of public spending, which is acceptable and necessary in The medium and long term, when productive units and economic activities begin to benefit from development programs.