Algeria on Wednesday said it is likely to implement austerity measures to face the falling oil prices in the international market.

Although Prime Minister Abdelmalek Sellal told reporters that Algeria is not enduring difficult economic stance following the plunging oil prices, he admitted that the government has taken a couple of measures to face such a situation.

On the margins of the fair of local production being held in Algiers, Sellal announced that the council of ministers headed by President Abdelaziz Bouteflika on Tuesday decided to implement new budget cut, including the freeze of employment process in the public service in 2015.

"2015 should be a year of solidarity and trust between the government and the people," said Sellal, who rejected to admit that his country is enduring a crisis, but assured that the government continues to subsidise staple food stuffs in order to keep prices within the reach of all.

He further revealed that the government will reduce the number of "mega projects" such as tramways and railways, in addition to implementing a more rigorous management of the government budget.

However, he reassured to maintain the funding of other priority projects, including in the sector of education.

The Budget Law of 2015 earmarks more than 100 billion U.S. dollars for the coming year.

In mid-December, Mohamed Laksaci, Governor of the Central Bank of Algeria, warned that the continuing drop in oil prices may have an adverse effect on the financial capacities of Algeria to withstand potential shocks on its foreign balance of payments.

The government should have taken this waking-up call seriously, and decided finally to review public spending for the next year, he added. Endit

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