The Impact of Tax Reform on Enhancing the Effectiveness of Fiscal Policy in Algeria (2000–2024)

Abstract

This study examines the impact of tax reform on the effectiveness of fiscal policy in Algeria, focusing particularly on the Algerian case between 2000 and 2024. The study assesses the effectiveness of the tax reforms adopted by the Algerian government in financing the state treasury and covering public expenditure, as well as their contribution to stabilising the economic and social structure. 

The study also conducts an econometric analysis of fiscal and tax policy in Algeria throughout the study period based on indicators including revenues, expenditure, the general budget and ordinary taxation (general tax revenues). The study period is divided into two phases. During the first phase (2000–2010), oil tax revenues outperformed ordinary taxation. During the second phase (2010–2024), however, oil tax revenues declined, while ordinary taxation surpassed them. 

Both trends significantly affected the budget deficit despite the tax reforms implemented during the study period. Nevertheless, ordinary taxation did not replace oil taxation. The study concludes that taxation did not fulfil the requirements necessary to strengthen the effectiveness of fiscal policy in Algeria. Finally, it presents proposals and recommendations related to this topic.