The Impact of Hidden Economy on the General Budget in Algeria

Abstract

This research aims to study the hidden economy as a phenomenon in Algeria, Which includes all illegal economic activities, In addition to studying the impact of this hidden economy on the general budget in Algeria by estimate the size of tax evasion as a result of existence of hidden economy activities, And then calculate the contribution tax evasion in amplification of the budget deficit in Algeria. Such funds resulting from tax evasion can save to the State a stable resource. this study concluded that the encourage of the hidden economy activities to join to the formal economy in Algeria will increase the volume of public revenues by 10% and turn the budget deficit into surplus in many years.