(MENAFN) Algerian Energy and Mines Minister Chakib Khelil said that the country will earn around 30 billion from oil and gas sales this year if energy prices stay at current levels, less than half the 76 billion it made last year, Reuters reported.
OPEC member Algeria has the world's 15th biggest oil reserves and is a major gas supplier to Europe.
Years of bumper energy revenues have helped fund national development programmes including roads, dams, schools and much-needed housing for its population of 34 million.
The government says it has the means to increase state spending by 6.3 percent this year because the long period of high energy prices allowed it to amass hefty reserves and repay most of its foreign debt.
Algeria's foreign exchange reserves had swollen to 138 billion by November, from 110 billion at the end of 2007, which was already up 42 percent from the previous year.
In a speech on February 12 to announce he would stand for a third term in office, President Abdelaziz Bouteflika promised 150 billion to further develop the country in the next five years.