Algeria/Rapidly reform local taxation to ensure "stable" financing of local authorities

Published on 27/09/2021 | La rédaction


The Prime Minister, Minister of Finance, Aimene Benabderrahmane stressed, Saturday, the need to open the reform of local taxation "as soon as possible" to ensure a "stable" funding of local communities.

"The projects to be opened as soon as possible are related to the reform of local taxation, solidarity between local authorities, the development of domain revenues, and the revision of the expenditure process at the local level," said Mr. Benabderrahmane. Benabderrahmane during his speech at the meeting Government-Walis.

Concerning the reform of local taxation, the Prime Minister said that "the financing of the local authorities' budget with permanent revenues is fundamental, even imperative. The same goes for the reform of taxes imposed on land which is another alternative to ensure a stable financing of municipalities, in addition to the revision of other taxes and the strengthening of the collection component.

For the Prime Minister, the reform of local taxation alone cannot achieve the expected balance to ensure justice in development.

"The subsidies granted by the State must be directed towards local development activities and serve to strengthen the financial stability of local communities," Benabderrahmane added.

Underlining "the decline" of the participation of estates in the strengthening of local communities, hence the need to initiate a reflection to find other solutions", the Prime Minister maintained that the services of Domains and Land Registry had conducted a census covering a considerable rate of land at the level of the country's municipalities.

This census has affected more than 16 million hectares in rural areas and 500,000 hectares in urban areas, he said, noting that this operation will increase the rate of recovery of the land tax of the municipalities and the coverage of expenses.

Referring to the problems facing local development, the Prime Minister stressed the importance of drawing lessons on land, financing, management, equipment and organization of priorities, all difficulties arising from the lack of a common policy on local development.He stressed the importance of learning lessons on land, financing, management, equipment and organization of priorities, all difficulties arising from "the lack of a comprehensive vision for the development of municipalities and the wilaya that led to the launch of operations that have not achieved the expected results.

He stressed, moreover, the habit of municipalities to benefit from aid and not to give priority to the creation of sources of wealth and the search for other means of financing, in addition to the weakness of private resources, and therefore the recourse to state aid.

Mr. Benabderrahmane noted that despite "significant investments in infrastructure, housing and social structures, large cities have not managed to reconcile population growth and the quality of life desired by residents.

He called, in this context, to "review the efforts to be made in the shadow areas concerned by 3.519 operations of a financial envelope estimated at 197.3 billion Da with a program underway of a budget of 108.3 billion Da. Thus, it was proceeded to the reorganization of the program book to include the priority projects".

On this occasion, the same official said that the State, through its political program, "remains faithful to its missions to ensure a balanced and consistent development of the national territory. However, this development depends on an exemplary organization to ensure its success".

The Prime Minister insisted on the imperative to show rigor and transparency in the choice of objectives and the organization of priorities by involving all operators, each according to its level.


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