Core Viewpoint - Algeria aims to control its fiscal deficit to approximately 10% of GDP by 2028 while ensuring fiscal sustainability and manageable inflation, alongside maintaining public investment and economic growth [1] Fiscal Policy - The Algerian government views the fiscal deficit not merely as a risk but as a macroeconomic tool to support infrastructure, industry, and employment [1] - The government plans to implement more precise fiscal allocations to direct funds into the real economy, thereby unlocking underutilized capacity [1] Structural Reforms - A key focus of structural reforms is the restructuring of the subsidy system, with a gradual reduction of universal subsidies in favor of more targeted social support to reduce fiscal waste and enhance public spending efficiency [1] - This approach aims to alleviate fiscal pressure without adversely affecting vulnerable groups [1] Revenue Generation - The government will pursue tax reforms and upgrade its anti-tax evasion system to expand the tax base, enhance electronic tax collection, and utilize financial technology to stabilize fiscal revenues [1] - Strengthening the state's ability to constrain underground economy activities and tax evasion is also a priority [1] Debt and Financing - Algeria has extended the repayment period for domestic debt to 2048 and will continue to finance its fiscal cash flow needs through the bond market [1] - The "non-conventional financing" mechanism implemented from 2017 to 2019 has been officially frozen, marking a return to a more regulated and controllable fiscal operation framework [1]

Group 1 - The trajectory of U.S. Treasury yields is influenced by two main factors: the sustainability of the budget and long-term debt control plans [1] - The willingness of global investors to finance the U.S. deficit is critical, especially in light of deteriorating geopolitical relations and declining confidence in U.S. Treasuries as a safe-haven asset [1]