Analytical study of the impact of public budget deficits in money supply and treatment mechanisms The case of Algeria

Abstract

This paper aims at analyzing the developments in the general budget in Algeria during 2013-2016 in order to deepen our understanding of the nature of the deficit in Algeria and its causes, as well as the basics of cash supply, monetary policy and its instruments in Algeria and the most important monetary developments and their associated deficit In the public budgets during the period of study, with the provision of some mechanisms to treat the deficit of the balance, and this in light of the increase in the volume of public spending, especially in the area of ​​management and lack of financial resources, led to resort to various sources of funding to cover the deficit and the impact of the effects on the economy In general, Algeria's general budget deficit is increasing due to the huge acceleration in the growth of public expenditure and the scarcity of financial resources. Algeria's dependence on limited and unstable resources has had a significant impact on the increase in the size of the monetary mass and accompanied by increases in the rate of inflation. Addressing the budget deficit using a rational and prudent budget policy that is in line with the economic conditions in Algeria as one of the most important economic policies.