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Law

Communes must set aside 10% of operating revenue for investment in 2027

By Magic Algeria
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What this means for you

Communes must put aside at least 10% of their eligible operating revenue for equipment and investment projects in 2027, after the two fund deductions are taken off. Residents may see this reflected in local works and facilities planned by their commune.

The text
In force

The text is in the Journal officiel. What is written here follows that text.

Journal officiel
77 · 04/11/2026
In force from
01/01/2027

An interministerial order sets at 10% the minimum share of their operating revenue that communes must transfer to fund equipment and investment in 2027.

An interministerial order, signed on 5 October 2026 by the Ministry of the Interior and the Ministry of Finance and published in Journal officiel no. 77 of 4 November 2026, sets the minimum legal rate that communes must transfer from their operating revenue to their equipment and investment section for the year 2027. That rate is 10%.

The revenue counted for the calculation includes certain equalisation allocations, indirect and direct tax income, and compensation for tax reductions, exemptions or removals. From this base, two deductions apply: 2% for the solidarity and guarantee fund for local authorities, and 4% for the wilaya fund that supports youth and sports initiatives.

The order applies to the 2027 budget year. Communes must take it into account when preparing their budgets for that year.

Show sources (1)
  1. Journal officiel no. 77 of 4 November 2026
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