Revista JRTMED vol. 11 nr. 2(22) 2024-81-94
DETERMINANTS OF ISSUING THE SUPPLEMENTARY FINANCE LAW IN ALGERIA DURING THE PERIOD FROM 2000 TO 2020
Messaoud BOUKHALFI, Assoc. Prof., PhD in Economic Sciences
Laboratory of Applied Studies in Financial & Accounting Sciences
University of Ghardaia, Algeria
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ORCİD: https://orcid.org/0009-0000-5808-5682
Abderraouf ABADA, Assoc. Prof., PhD in Economic Sciences
Laboratory of Applied Studies in Financial & Accounting Sciences
University of Ghardaia, Algeria
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ORCİD: https://orcid.org/0009-0005-7389-7175
Abdelfattah DAOUDI, Assoc. Prof., PhD in Economic Sciences
Laboratory of Digitization in Economic and Media Institutions and Public Administrations
University Mohamed Boudiaf of M'Sila, Algeria
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ORCİD: https://orcid.org/0000-0001-6461-2952
DOI: https://doi.org/10.59642/JRTMED.2.2024.05
Universal Decimal Classification: 336.14:330.113
JEL Classification: E50, H60, C30, C51, C88
Abstract
This study aimed to identify the underlying factors explaining the nature of decisions related to the issuance of the Supplementary Finance Law during the period from 2000 to 2020, This was based on a set of factors, including Gross Domestic Product (GDP), budget deficit, exchange rate, oil price, inflation, and external debt, We employed the discriminant analysis methodology, which is one of the multivariate analysis methods, by focusing on the Stepwise Discriminant Analysis (SDA) method, then estimating the discriminant function to distinguish between two groups, issuing and not issuing, some testing to measure the quality of the classification. The study found a single discriminant function, with 85.7% of the years in both groups correctly classified, the budget deficit was found to have a significant impact on the decision to issue or not issue the Supplementary Finance Law, in addition to the lack of influence of some other economic variables such as gross domestic product and inflation. Therefore, this calls for the development of financial forecasting tools and strengthening governance to improve the accuracy of original financial estimates and reduce reliance on supplementary financial laws to ensure the stability of financial policies in the long term.
Keywords: Supplementary Finance Law, Budget Deficit, Public Finance, Macroeconomics, Stepwise Discriminant Analysis, Discriminant Function
