التكامل الاقتصادي
Volume 13, Numéro 4, Pages 115-134
2025-12-31

Local Financing: Current Reality And Prospects For Reform And Development -the Case Of Oum El Bouaghi Province-



Authors : Kalleche Roumaissa . Zagay Walid .

Abstract

This study aims to analyze the effectiveness of the local financing system in supporting local development in Algeria, with a particular focus on Oum El Bouaghi Province during the period 2014–2022. The study seeks to assess the contribution of both internal and external financial resources in meeting the growing needs of the local population. The findings reveal that internal revenues-especially local taxation- remain insufficient to cover development expenditures. In contrast, external resources, including government transfers and subsidies, play a significant role in supporting development. The study also identifies a number of structural challenges, such as limited diversification of funding sources, inefficient tax collection mechanisms, and weak local financial governance. Accordingly, the study recommends adopting a comprehensive reform strategy focused on diversifying revenue sources, improving the local tax system, stimulating investment, and strengthening the financial planning capacities of local authorities, in addition to encouraging community participation to achieve sustainable and inclusive local development.

Keywords

Local Financing ; Local Development ; Algeria ; Oum El Bouaghi province

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