Luanda, ANGOLA, August 18 - The Angolan Parliament recently approved a new legal instrument, proposed by the Government, to strengthen a balanced and comfortable financial reality in the country, which will guarantee, in the long term, the capacity to sustain projects. ,

This is the draft Law on Financial Sustainability, which makes the Angolan legal system better prepared to face the fight against corruption, tax evasion and money laundering.

 

Proposed by the Head of the Government, the law is part of the strengthening of medium-term public finance management instruments and tax rules that contribute to the implementation of tax policy in Angola.

 

A "pioneer" in the country in this area, the text establishes rules aimed at ensuring macro-economic stabilization and the sustainability of public finances, paying attention to the main financial problems faced by the state.

 

As one of the measures it outlines, the diploma envisages the materialization of the long-term development strategy, since the instruments it establishes reinforce the short and medium-term effectiveness of the National Planning System.

 

In concrete terms, this is an initiative that raises the need for planning as a first step towards financial sustainability, since, without it, all the efforts undertaken by the Government may be useless.

 

To achieve this goal, the Government is aware that it needs the technical and financial capacity to face financial pressure and to be able to implement projects with quality and independence.

 

Basic principles

 

Taking into account that the idea of financial sustainability is based on several assumptions, such as strategic planning, quality management, leadership and sustainable purchasing, the text defines three basic principles that conform this figure.

 

The first principle is Fiscal Stability, which establishes the use of public revenue and expenditure to smooth out cyclical swings in economic activity and support in mitigating crises when necessary.

 

The second principle has to do with fiscal sustainability, which aims at generating adequate revenues, maintaining a prudent level of expenditure execution, implementing cautious management of financing, public assets and liabilities, aiming at the soundness of public finances in the short, medium and long term, in a responsible and timely manner.

 

The latter has to do with transparency, which consists of providing sufficient and adequate information to the National Assembly and the general public, to ensure access to information and compliance with this Law.

 

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