Analysing the sustainability of fiscal policy in Algeria

Abstract EN

The study examines the sustainability of fiscal policy of Algeria over the period of 1980-2017, using The unit root, co-integration tests and Quintos approach.

The study results show that government revenue, government expenditure are cointegrated, which indicates that Algeria fiscal policy is sustainable in the long run although the results found the weakness of this sustainability.

The study therefore recommends that government should improve on her tax revenue generation and other source of income and ensure records of surplus budgeting.