Algeria is set to approve a substantial increase in defense spending for 2026, marking the largest allocation ever proposed for its armed forces. According to the draft finance law for the coming year, the national defense budget will exceed 3,205 billion Algerian dinars—approximately $24.6 billion—making it by far the top government expenditure and maintaining the military’s dominant role in public spending.
Authorities attribute the significant increase to ongoing security challenges along Algeria’s borders, especially in the south. These conditions have prompted the government to boost resources for operational readiness and new military equipment. The lion’s share of the defense budget will be devoted to day-to-day operations and upgrading military technology, including the acquisition of modern defense systems and advanced weaponry.
The draft law outlines a defense budget of over 3,205 billion dinars that includes authorization and payment credits. Among the priorities are funding for weapons contracts and ongoing modernization efforts, which reinforce Algeria’s position as a military leader in the region.
The 2026 proposal continues a trend of rising defense budgets, with the ministry’s annual allocation increasing steadily over the past seven years. In 2023, Algeria’s defense budget was around $18 billion; by 2026, it will have grown to $24.6 billion. The increases, officials say, aim to ensure the country can respond to shifting security needs and modern threats to national territory.
Of the total for 2026, about 908 billion dinars is earmarked for the defense of the republic and national territory, and 861 billion dinars is allocated for logistics and multi-dimensional support. Another 1,736 billion dinars will go to the general administration of the Ministry of National Defense.
Analysts and government sources point to the worsening security environment in the region as justification for the expanded budget. Ongoing threats include terrorism, instability across the Sahel, organized crime, illegal migration, and trafficking in humans, drugs, and psychotropics. Neighboring countries like Mali, Niger, and Libya continue to face political turmoil and weak state institutions, adding to Algeria’s sense of vulnerability.
The drive to reinforce military spending highlights Algeria’s commitment to national defense and its intention to respond proactively to the complex risks emerging from its borders and the wider region.
