I ordered a vote on preparing the additional budget before June 15:
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Expressiveness
The Ministry of the Interior, Local Governments and Transport, the governors of the Republic and the heads of departments and municipal people’s councils stressed the urgency of closing the files of delayed development projects, and to begin paying the debts accumulated by local communities towards “Sonelgaz”, “Algerian Water”, “Algerie Telecom” and the National Publishing and Advertising Corporation, while completing the preparation and voting on the additional budgets for the year 2026 before June 15 of this month.
An urgent framing memorandum dated June 7, seen by Echorouk, and addressed to the Minister and Governor of Algiers, the governors of the Republic, the delegated governors, the heads of departments, and the heads of the municipal popular councils, included a set of directives related to how to prepare and finance additional budgets for the states and municipalities for the fiscal year 2026, and adjust the mechanisms for sponsoring programs funded from the income of the housing tax, in addition to reminding local groups of how to exploit The exceptional license granted to settle outstanding debts for previous fiscal years.
Warning against recording fictitious revenues that affect financial covers
In this context, the Ministry recorded continued delays in preparing and completing procedures related to additional budgets in a number of states and municipalities over the past years, as the process extended in some cases until the last trimester of the fiscal year, which – according to the memorandum – had a negative impact on the launch of development projects, especially those financed from the own resources of local groups. Accordingly, the Ministry stressed the need to take measures to correct these imbalances, while adhering to the legal provisions stipulated in Article 165. of state law and Section 181 of the Municipal Code.
Regarding the management department, the Ministry stated that the financial appropriations for the programs funded by this fee and recorded in the initial budget for the year 2026 must be redirected towards financing other development programs in the Equipment and Investment Department according to priorities, without subjecting them to the applicable deductions for the collection revenue.
On the other hand, the Ministry confirmed that the share of the output of the housing fee belonging to the states remains subject to a special allocation directed exclusively to restore the status of the real estate portfolio of the state’s municipalities. It also explained that, pending the issuance of the regulatory text specifying the modalities and procedures for deducting this fee for the benefit of the Equipment and Investment Department, the programs open during the fiscal years 2025 and 2026 will continue to be implemented, as an exception, in accordance with previously established procedures.
On the other hand, the memorandum highlighted the benefit of local communities during the fiscal year 2026 from several financial allocations from the state, directed to cover the expenses of operating, maintaining and guarding primary schools, school feeding, and the financial impact resulting from increases in the wages of local government employees, and the wages of beneficiaries of the professional and social integration assistance systems, in addition to public service, the expenses of running the municipal guard corps, the solidarity grant for the month of Ramadan, and incomplete compensation. The tax value resulting from tax reductions, exemptions, or cancellations decided by the state.
In this context, the Ministry ordered activity officials at the state level to ensure the actual distribution of these allocations for the benefit of municipalities, while restricting them to the budgets of states and municipalities and respecting their original destination to ensure the achievement of their set goals.
It also stressed that the states that did not benefit from the allocations for running the Municipal Guard Corps due to their availability of positive financial balances from previous years exceed their annual needs, demanding that these balances be used to fully cover expenses and settle their budgetary situation by canceling the discretionary appropriations recorded in the initial budgets for the year 2026, in a way that ensures the rationalization of financial resources and the improvement of their management.
With regard to the process of monitoring and approving additional budgets, the Ministry obligated the local administration directorates and guardianship departments in charge of monitoring municipal budgets to ensure that the recorded differences between the final amounts granted and the amounts included graphically in the initial budgets for all allocations and subsidies for the year 2026 are settled, in order to avoid recording fictitious revenues that may lead to an overconsumption of financial appropriations.
Regarding the accumulated debts, the Ministry stressed the need to immediately take care of them by allocating the necessary financial appropriations and starting to pay them in accordance with the procedures specified in the joint decision dated May 5, 2026, and the exceptional license granted by the Prime Minister on April 22, 2026.
Local communities were obligated to attach the commitment files and disbursement orders related to the payment of these debts to the deliberations of the municipal or state popular councils, as well as administrative certificates and detailed reports proving the compliance of the expenditure with the applicable legislation and regulation, while continuing this process until the close of the current fiscal year.
As for the equipment and investment section, the Ministry ordered the municipalities to begin the process of purifying the programs registered during the previous fiscal years and to take the necessary measures to close the expired programs, in preparation for the entry into force of the new code for municipal budgets, starting with the preparation of the initial budgets for the year 2027.
The Ministry noted that monitoring local budgets revealed that a number of programs continued to be transferred from one year to another without consuming the financial funds allocated to them, which led to the loss of their value over time, calling on local groups to purge the Code of the Equipment and Investment Department of these programs and redirect the available funds towards new development projects, as they are an important financial resource to support local development.
