Algeria plans to slash spending in 2020, but still sees itself posting a four-year high deficit. With pressure from the streets continuing, the government plans a record wage bill, whilst subsidy spending remains worryingly high.

Faced with a rapidly deteriorating economic outlook, Algeria’s embattled interim government plans to cut spending to AD7.77 trn ($65.3bn) for 2020, down 5.2% in nominal terms versus the finance ministry’s forecast of AD8.2tn ($68.9bn) for 2019. But this...