Africa-Press – Angola. The Secretary of State for Budget and Public Investment, Juciene Cristiano de Sousa, highlighted, this Wednesday, in Luanda, the need to rationalize expenses, simplify fiscal relief and continue fiscal reform to make the General State Budget (OGE) 2024 sustainable.
Speaking at the 2nd Edition of the Angola Economic Outlook, he highlighted that there are other measures that include investing in national production and stimulating liquidity.
Juciene Cristiano de Sousa stressed that the budget proposal has main quadrants, such as strengthening family income, providing for the implementation of social protection measures, boosting employment and reviewing the labor income tax to adjust public service salaries.
He explained that, for the 2024 OGE, there was a need to adopt a much more conservative stance, since, in terms of general assumptions, we are talking about a prepared budget proposal, taking into account oil production of around 1,060 million barrels of oil per day.
The 2024 OGE Proposal, delivered to Parliament on October 31, presents a total of 24.7 billion Kwanzas, of which 14.7 billion corresponds to fiscal expenditure, including debt interest, and the other 10 billion is intended for financial expenses related to debt repayment, in the amount of 9.7 billion, and capitalizations in the amount of 300.4 billion kwanzas.
As for functional expenditure allocations, the budget is marked by a high debt service, concentrating around 57.8% of total budget expenditure, with a total amount of Kz 14.3 billion, according to the Rationale Report.
The report states that the social sector accounts for the second largest share of the budget, with a weight of 20.1% (Kz 4.9 billion), followed by General Public Services, with 9.0% (Kz 2.2 billion, Defense , Security and Public Order, with 7.1% (Kz 1.7 billion) and the Economic sector (Kz 4.9%).
The OGE 2024 proposal will also include resources to support the private sector, aiming to boost the economy, through a financial package worth Kz 477.26 billion, of which Kz 147.26 billion for the capitalization of financial institutions in the State dedicated to granting credit to the national economy.
Kz 330.00 billion will also be available for the issuance of sovereign guarantees to promote private investment.
The 2024 General State Budget proposal brings a global surplus fiscal balance of 17.4 billion kwanzas, corresponding to 0.02% of the Gross Domestic Product (GDP), as a result of tax revenues and expenses of 20.08% and 20.06%, respectively.
It is expected to create a positive primary balance of around 6.2% of GDP and the implementation of the commitment to reduce the non-oil primary deficit, expected to 4.1%, within the 5% limit stipulated by the finance sustainability law public debt, as well as the reduction of the government debt ratio to 69.2% of GDP, against the expectation of closing at 79.9% in 2023.
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