President Tebboune's tour reveals little progress on Algerian public projects

Algerian President Abdelmadjid Tebboune recently made an unusual visit to several cities and provinces in central Algeria. The tour shed light on the modest achievements of his presidency, as very few public projects and investments were found, apart from a hospital.

During the visit, President Tebboune laid the foundation stone for two seawater desalination plants in Boumerdes, located east of the capital. He also inaugurated a media city project in the capital. However, these initiatives fell short of the growing demand for public investment to improve services and boost the local economy.

It seems that the government's performance in this area has been lackluster. In recent years, the focus has been mainly on solving social problems, such as wage increases, pension adjustments and subsidies for the unemployed. However, these measures have been offset by inflation and declining purchasing power. The government has also prioritized the organization of sporting events and the achievement of political and diplomatic milestones.

Although some projects inherited from the previous administration have been resumed, especially in sports infrastructure, President Tebboune's Algeria has made relatively modest progress in public investments in various sectors. The allocation of annual budgets has been predominantly directed to cover salaries, planned increases and social transfers, leaving a limited share for public investments. This approach fails to meet the growing needs of Algerian society, such as housing, employment, infrastructure, health and education.

In recent years, there has been a marked decline in the number of development projects inaugurated or launched during national events and festivities. This indicates a lack of balance and planning in the allocation of public funds, neglecting local development and public investments, which are essential for social stability, job creation and the overall prosperity of Algerians.

As reported by Alarab, observers of local affairs are not surprised by the decline in development performance. They attribute this decline to the budgetary focus on salaries and social measures, neglecting the crucial role of public investments. The current year's budget, estimated at about $100 billion, has placed heavy emphasis on social measures, defense capabilities, diplomacy and presidential activities, hampering local development efforts.

Next year's budget is expected to exceed US$10 billion, but it remains unclear whether the Government will maintain the same approach or re-evaluate the balance between administrative expenditures and public investments. The uncertain future of energy exports and potential crises, such as the Ukrainian crisis and fluctuations in international oil prices, further complicate decision-making on budget allocation.

The government appears to be betting on efforts to recover embezzled funds, especially at the national level. President Tebboune has mentioned the possible recovery of nearly $40 billion, as well as the reactivation of projects paralyzed due to bureaucratic and political obstacles created by what he calls a "gang", alluding to the former regime of President Abdelaziz Bouteflika. However, the scope and use of these funds, their contribution to Gross Domestic Product and their impact on public revenues and the local economy remain unclear.

During his visit, President Tebboune highlighted the role of the "counterrevolution" in undermining the aspirations of the new Algeria. Instances of sabotage, such as repeated attacks on the power supply to desalination plants and the deliberate squandering of water to exacerbate drought, have hampered his efforts. These actions have also contributed to financial liquidity problems in 2021.

Apart from the inauguration of a government hospital specializing in burns in the capital's Zeralda suburb, the president's tour only resulted in the launching of two projects: a medium-scale seawater desalination plant and a media city for government and private television and radio institutions.

Although there have been limited partnerships in strategic sectors such as oil, gas and minerals, with some recent discoveries meeting the needs of Western partners, foreign capital has not yet fully invested in Algeria due to the aforementioned reasons and circumstances.