Once again, military spending tops Algeria budget priorities for 2026

Algeria is set to allocate roughly $25 billion to its military in 2026, maintaining defence spending at record levels and accounting for almost a quarter of total public expenditure.

Over the weekend, the Council of Ministers discussed the 2026 draft budget, expected to be passed by parliament in the next few days. It projects total expenditures of over $135 billion, up from $128 billion in 2025,

The North African state's new budget draft continues a trend that began in 2020, when military spending was $19.7 billion.

The figure rose to $22 billion by 2023 as the country aimed to modernise its armed forces and address growing regional instability. 

There was a slight dip to $21.6 billion in 2024. The budget then climbed to $25 billion in 2025—a level set to be maintained in 2026 at DZD 3,208 billion (roughly $25 billion), according to local media.

The Ministry of Defence now ranks alongside the Ministry of Finance as the top recipient of state funds, each receiving roughly $25 billion. 

Algeria's defence budget is the largest in the Maghreb, far exceeding Tunisia's $1.4 billion, Morocco's $13.4 billion, and Mauritania's $274 million.

In June, parliament reinforced the country's militarised focus by approving the "General Mobilisation Law," granting the army broad authority over national affairs. 

The move followed escalating tensions in the Sahel, including the Algerian air force's downing of a Malian drone in April.

Officials cite border insecurity, transnational militancy, and illegal trafficking as persistent threats requiring sustained investment in defence. 

Algeria's southern borders have long been a concern, with extremist groups, arms and drug trafficking, and irregular migration posing continuing challenges.

While the government argues that national security demands such spending, the defence budget places a heavy burden on state finances, which depend mainly on volatile oil and gas revenues. 

Officials have warned that supplementary budgets may be needed mid-year to maintain priorities.

The 2026 finance bill stresses fiscal discipline and anti-corruption measures without introducing new taxes. 

It targets tax evasion and the informal economy—estimated at between $50 and $60 billion—while tightening rules on foreign currency declarations and precious metal transfers.

Adjustments to fuel and luxury taxes, as well as property regulations, aim to boost revenues.

However, critics say the government's priorities are unbalanced in a country that has not been at war for years.

Algeria spends approximately $6.35 billion on health and $11.2 billion on education for a population of nearly 46 million, despite constitutional guarantees for both sectors.

A report by the Borgen Project, a US-based NGO, estimates around 23% of Algerians live below the poverty line, with rural poverty twice as high as in urban areas acc

The military, rooted in its historical role during the war of independence, has long operated with limited parliamentary oversight. 

President Abdelmadjid Tebboune serves as both head of state and Minister of Defence. 

Although the constitution provides for legislative scrutiny, defence and diplomacy were formally exempted from parliamentary questioning in 2022 under state secrecy provisions.

In 2025, the military budget included funding for new arms acquisitions, such as Russian missile systems and advanced fighter jets.

During the same year, Algeria held a large-scale military parade marking the 70th anniversary of the national revolution. 

More than 100 fighter jets and drones were displayed. Hundreds of tanks appeared, including the Russian Iskander-E ballistic missile system. 

The event also underscored Algeria's regional ambitions and ongoing rivalry with neighbouring Morocco, particularly over the disputed Western Sahara territories.

For now, as Algeria pours resources into its military, debate continues over whether the country's security-first budget adequately addresses the everyday needs of its citizens.