The Algerian government has approved a record $25 billion defense budget for 2026, marking the largest military allocation in the country’s history, amid growing security concerns across the Sahel region, according to The Clash Report.
The total 2026 finance bill amounts to $135 billion, up from $128 billion in 2025 and $113 billion in 2024 — an increase of about 5.5%. Defense spending now accounts for 20.6% of the national budget, surpassing even the Ministry of Finance, which will receive 20.3%.
Since 2022, Algeria has been steadily increasing its defense expenditures despite economic challenges and fluctuating oil revenues. Between 2020 and 2022, annual defense spending ranged between $8–11 billion. That figure rose to $18 billion in 2023, $22 billion in 2024, and $24 billion in 2025.
However, this surge comes amid declining hydrocarbon prices, currently between $65 and $67 per barrel, and a projected $40 billion budget deficit — sparking debate in Algiers about how long such spending can be sustained without broader fiscal adjustments. Analysts warn that the policy could strain Algeria’s financial balance if maintained long term.
While there are no major new security threats, Algeria’s defense priorities remain influenced by longstanding tensions with Morocco and instability in Mali and Niger. Some unconfirmed reports also claim that Algeria may have become the first foreign customer for Russia’s Su-57 and Su-34 combat aircraft, reportedly spotted during pre-delivery test flights.
This renewed emphasis on defense underscores Algeria’s intent to preserve regional influence and deterrence amid shifting dynamics across North and West Africa. The record military budget further highlights that national policy continues to revolve around security and military capability as central pillars of Algeria’s strategic outlook.
