Algiers, Algeria— Algeria plans to allocate nearly $23 billion to defense next year, more than double that set aside in 2022, according to a draft budget adopted by lawmakers on Tuesday.
The surge in spending comes as Africa’s top natural gas producer has seen its revenues buoyed by elevated hydrocarbon prices over the past year. It also comes amid heightened tensions between Algeria and neighboring Morocco, including over the disputed Western Sahara.
The total allocated to defense in 2023 will be 3.186 trillion dinars ($22.8 billion), up from 1.3 trillion dinars for 2022, according to the budget approved by the lower house of parliament.
This month alone, Algeria’s state energy firm Sonatrach on signed a three-year deal to sell gas to Slovenia via a pipeline through Italy from January.
In October, the European Union’s energy commissioner hailed a “long-term strategic partnership” with Algeria as the bloc turns to Africa’s biggest gas exporter to fill a gap left by Russian supplies.
Just around the same time, Algerian state energy firm Sonatrach agreed with Spanish buyer Naturgy to revise prices on gas deliveries through a key undersea pipeline, as Europe gears up for a winter energy crunch.
The upper house will also have to approve the spending.
The overall budget is predicated on a forecast economic growth rate of 4.1 percent and inflation of 5.1 percent, along with an oil price of at least $60 a barrel.