Luanda, ANGOLA, November 19 - The 2020 State General Budget (OGE) Draft, which foresees expenses and revenues of just over 15.8 billion kwanzas, will go through general discussion and vote in the National Assembly (parliament) this Tuesday.,

To be marked by the reading of political statements, the discussion and approval of the OGE Draft, in general terms, will take place during the first ordinary plenary meeting of the 2019/2020 legislative year.

The 2020 General State Budget DRaft foresees expenses and revenues of just over 15.8 billion kwanza, 4.5 billion more compared to 2019.

Among other things, the budget prioritizes fiscal consolidation, with particular emphasis on debt control and the re-launch of economic activity.

 

On the occasion of the delivery of this main instrument of management and execution of Government policy to parliament, the Minister of State for Economic Coordination, Manuel Nunes Júnior, stated that in 2018, the overall balance of public debt settlement recorded a fiscal surplus of 2.2% of GDP and, by the first half of this year, reached 1.3%, counteracting the negative trend that reached 90% since 2014.

It foresees, by 2020, a positive leap of 1.2% of GDP, which considers the safest way out of the “debt trap” which, in general, obliges the country to take on debt to pay off other loans, maintaining the path of surplus started in 2018.

The Minister of State foresees, with the 2020 State Budget, a recovery of economic growth in around 1.8%, with the non-oil sector increasing 1.9%, with emphasis on the agriculture, fisheries and manufacturing sector, in order to reverse the negative results recorded since 2016.

 

He considers it essential to ensure economic growth for job creation, income and population's welfare.

The Finance minister, Vera Daves, said that the total amount to cover the revenues and expenses of more than 15 billion kwanzas represent a surplus to avoid future debt.

She also reported that the OGE has as reference the oil barrel at 55 dollars, to compensate eventual volatility, due to the perspectives of evolution of the world oil market.

 

He stressed the fact that next year's OGE proposal would be higher than the 2019 revised budget, to ensure that a significant portion is devoted to reducing public debt.

"It is not yet the desired State Budget, but it’s almost there, because it proposes to ensure fiscal consolidation and economic growth, in an environment of expected inflation rate of 24.3%, essentially due to ongoing tariff adjustments," he said.

He said that 40.7% of the total amount of the State Budget is destined to the social sector, against 39.8% of the current one.

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