مجاميع المعرفة
Volume 11, Numéro 2, Pages 271-294
2025-12-15

Fiscal Policy Amid Oil Price Shocks: Challenges And Responses / السياسة المالية في ظل صدمات أسعار البترول: تحديات واستجابات

Authors : Safi Ahmed . Benabed Mokhtar .

Abstract

Fiscal policy faces significant challenges in light of oil price shocks that directly impact public revenues and expenditures, especially in countries dependent on oil revenues. This study aimed to highlight the impact of oil shocks on economic growth and public finance in Algeria and to review the responses and policies adopted to mitigate the effects of these shocks. The study results concluded that oil price shocks are among the most important factors influencing fiscal policy and the national economy in Algeria, and that fiscal policy faced difficulties in maintaining a balance between public spending and revenues during periods of low oil prices, and that the absence of economic diversification increased the fragility of public finances in the face of oil fluctuations.

Keywords

Fiscal policy ; Oil price shocks ; Challenges ; Repercussions ; Economic stability ; E62 ; Q43 ; E60 ; E63 ; O55