This paper aims, on the one hand, to test the impact of government subsidies on income inequality, and on the other hand, to investigate the role of corruption control in increasing the effectiveness of government subsidies in the process of reducing the income gap in Algeria over the period 1996-2016. The results confirm the effectiveness of government subsidies in alleviating income inequality in Algeria. The findings also show the significant negative impact of corruption control on income inequality. The combined effect of government subsidies and control of corruption appears to be of paramount importance in reducing income inequality in Algeria