Rationalization of Public Expenditures in the Health Sector in Algeria in Light of the New Budgetary Reform: Justifications and Objectives

Abstract

The phenomenon of increasing expenditures in the public health sector in Algeria has become a significant issue for the state, similar to other sectors, regardless of the adopted economic system compared to the quality of the provided health services. This increase is primarily due to the development of certain functions from time to time, along with the growing population and their evolving demands and mindsets. Consequently, there has been a need to consider the rationalization of financial behaviors concerning the general budget, by devising alternative plans and programs, and seeking new techniques for public authority decision-making. The study has concluded that the budgetary reform in Algeria, which came into effect in 2023, marks a significant shift in the management of public health. It incorporates internationally recognized mechanisms for public budget governance, adopts an expenditure rationalization approach, and enforces a results-based management style. Moreover, it introduces program budgeting instead of traditional management budgeting. These reforms enhance the transparency and credibility of financial information, reflecting the state's true financial situation, and contribute to improving the efficiency and effectiveness of performance in Algeria's public health sector.