Tue, 19 Nov 2019 19:49 - Updated Wed, 20 Nov 2019 14:13
Parliament approves 2020 Draft State Budget
Luanda - The proposal for the State General Budget (OGE) for 2020 was approved on Tuesday by the Parliament.
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MPs vote in generality draft state budget for 2020
Photo: Pedro Parente
The draft, which is now being considered by the specialty committees, was approved with 119 votes in favor MPLA ruling party, 46 against (UNITA main opposition party and CASA-CE) and nine abstentions from the PRS and FNLA at the first Ordinary Plenary meeting of the 3rd Legislative Session of the IV Legislature, guided by the National Assembly Speaker, Fernando da Piedade Dias dos Santos.
To ensure macroeconomic stability at the current context, the Government prepared next year's State Budget proposal on the basis of an average crude oil price of USD 55 a barrel, an inflation rate of 25 percent and real GDP growth (GDP) of 1.8 per cent.
The fiscal projections point to the creation in 2020 of an overall surplus of 1.2 per cent of GDP and an equally surplus primary balance of 7.1 per cent of GDP.
The Minister of State for Economic Coordination, Manuel Nunes Júnior, presented at the occasion the message of the Head of State about the macroeconomic perspectives, while the Minister of Finance, Vera Daves, presented to the MPs the proposal of the State Budget 2020, which it intends to resume economic growth.
Before the MPs, Minister Vera Daves indicated that next year's proposed State Budget responds to the need to pursue the balance of public finances by optimizing public spending and boosting fiscal resources.
She pointed out, however, that the proposed budget for 2020 is exposed to some exogenous and endogenous risks to the Angolan economy, underlining that if these risks materialize favorably and generate greater cash balances, the process of reducing financial life will be accelerated and with state suppliers.
She noted that in the event that risks materialize in a favorable direction, generating greater treasury balances, the process of reducing debt and with state suppliers will be accelerated, thus contributing to the rapid solidification of Angola's economic fundamentals.
UNITA, the largest opposition party in Angola, has argued against the fact that the proposed State Budget brings uncertainties, not only to the Government itself, but also to the rest of the country's economic agents.
UNITA indicated that the State Budget will essentially be responsible for solving the internal commitments of the external public debt and less allocation to what is its function of producing and solving the citizens' problems.
The social sector will get 40.7 percent of fiscal spending, about 27.6 percent more than last year. In this sector, environmental protection, housing and community services and health stand out, with fiscal growth of 182.1 percent, 51.2 percent and 35.6 percent, respectively.
Social Protection, for its part, remained almost unchanged, with growth of about 1.2 per cent.
The economic sector, on the other hand, will get 11.0 per cent of fiscal expenditure, which corresponds to a 28.8 per cent contraction (kz 278.5 billion) compared to the budget allocation allocated in the State Budget.
This behavior is largely due to the decision of a smaller intervention of the Government in the national economy, supported by the process of privatization and promotion of private industry.
The Defense, Security and Homeland security sector grew by 21.2 per cent and represented about 19.3 per cent of tax expenditure, driven by the increase of 48.3 per cent.
General Services accounted for 29.0 percent of tax expenses, driven by the 65.2 percent increase over the previous year.
This behavior is supported by the increase in the budget allocation allocated to the General Services (463.6 percent) and the Government bodies (78.6 percent).
The basic financing needs for the State Budget 2020 are estimated at around Kz 7,879 billion, 18.8 percent of GDP.
However, the net needs are estimated at Kz 653.3 billion. This amount will be obtained by raising funding in the domestic and foreign markets.
- 20/11/2019 10:48:49
Luanda - The 2020 State General Budget (OGE) shows a possible and necessary balances to effectively ensure that commitments undertaken by the State are fulfilled.
- 19/11/2019 18:00:18
Luanda - The social sector will benefit roughly 2.3 billion kwanzas, under the State General Budget (OGE) 2020, equivalent to 38 percent of tax expenditure, about 19 percent more than in the current year.
- 19/11/2019 17:55:46
Luanda - The President of the Republic, João Lourenço, Tuesday, in Luanda, analysed with the Russian Federation ambassador, Vladimir Tararov, issues related to increased cooperation in the tourism, mining, industrial and financial fields.