VZCZCXYZ0000
OO RUEHWEB

DE RUEHAS #0074 0271650
ZNR UUUUU ZZH
O 271650Z JAN 10
FM AMEMBASSY ALGIERS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8361
INFO RUCNMGH/MAGHREB COLLECTIVE IMMEDIATE

UNCLAS ALGIERS 000074 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EEB/IFD/OMA BSAUNDERS, NEA/MAG JHPATTERSON, 
NEA/RA BMGRIMM 
 
E.O. 12958: N/A 
TAGS: AID EAID ECON EFIN PREL
SUBJECT: ALGERIA - FY2010 BUDGET TRANSPARENCY REPORT 
 
REF: STATE 81177 
 
¶1. (U) In response to reftel questions, post submits the 
following information. 
 
¶2. (SBU) The Algerian central government is expected to 
receive a portion of U.S. foreign assistance using FY10 
funds.  The USG has allocated USD 950,000 for IMET funding 
and USD 950,000 for Nonproliferation, Anti-Terrorism, 
Demining and Related Programs (NADR), which includes USD 
150,000 for the EXBS program, USD 400,000 for Antiterrorism 
Assistance Program, and USD 400,000 for counterterrorism 
financing.  All this funding is for training of GOA 
officials.  The USG provides additional funding to private 
implementers for programs that benefit the central 
government.  In this regard, the Algerian central government 
will benefit from funding of programs in the Middle East 
Partnership Initiative (MEPI) in the form of grants to 
implementers such as the American Bar Association, the 
National Conference of State Legislatures, and the National 
Democratic Institute. 
 
¶3. (SBU) Algeria's budget is publicly available.  The 
government's budget plans are announced each autumn for the 
following calendar year and debated in parliament.  The 
finance law (the budget law) is published in the Official 
Journal in early January.  A report of the finance law, 
including policy narratives, year-to-year comparisons, and 
other fiscal data, is available on the Ministry of Finance 
website.  The 2010 budget can be found on the following 
website - http://www.joradp.dz/HFR/Index.htm.  In addition, 
Algeria frequently publishes an amended budget (comparable in 
some ways to a U.S. supplemental budget), called the 
complementary finance law, in July.  In 2009, the 
complementary finance law was adopted by decree on July 22, 
2009 and published in the Official Journal. 
 
¶4. (SBU) Revenue and expenditure figures are made available 
publicly through the regular finance law and any subsequent 
complementary finance laws and are believed to be generally 
accurate.  Separate budgets are released for salaries and for 
public benefit pay-outs (such as veterans' pensions) at each 
agency (the "budget de fonctionnement" or operations budget) 
as well as for broad categories of capital investments and 
equipment costs (the "budget d'equipement" or procurement 
budget).  Revenues are reflected in terms of "ordinary" 
categories, such as taxes, customs, and royalties, and in the 
larger category of receipts from oil and gas sales.  A 
portion of petroleum receipts is still diverted to the 
stabilization fund, a fund designed to shelter excess assets 
and reduce inflationary pressures in the economy.  This 
process makes accounting for these revenues more complex. 
 
¶5. (SBU)  A factor in budget transparency is the finances of 
large state-owned companies, whose revenues and expenditures 
form a large part of the national budget.  This includes 
especially the oil and gas monopoly Sonatrach.  At the end of 
each year, the Government of Algeria (GOA) publishes an 
annual financial report drafted by the General Tax 
Administration (DGI) in the Ministry of Finance that 
incorporates information from complete financial reports 
submitted by each government ministry and by all companies, 
public and private.  That central government report is 
available on demand.  Large public companies, such as 
Sonatrach and the national gas monopoly Sonelgaz, publicize 
their financial reports every year, contributing to the 
transparency of the national budget. 
 
¶6. (SBU) Post is unaware of events that affected fiscal 
transparency since the 2009 review, and there have been no 
visible efforts made by the host government to improve fiscal 
transparency. 
 
¶7. (SBU)In the past year, post has not implemented a strategy 
to promote such efforts and has not created an action plan to 
work with the host government on improving fiscal 
transparency. 
PEARCE