Algeria plans to raise its budget expenditure by 6 percent this year to capitalize on the higher oil prices ahead of presidential elections next year, but economists warn that boosting spending would mean that the North African OPEC member would need even higher oil prices to balance its budget. According to a draft amendment of Algeria’s 2018 budget that Bloomberg has seen, the country plans to lift total spending by 6 percent and investment by 12 percent. The current budget is based on assumptions that oil prices would be around $50, while the Brent Crude price has not dropped below $60 a barrel since the start of this year and has averaged around $68. Oil and gas together account for 95 percent of Algeria’s export revenues and contribute 60 percent to its annual budget. The 2014 oil price crash has hit the economy, and the government has had to […]