Africa-Press – Angola. The National Assembly will hold this Monday, in particular, a session of appreciation, discussion and voting on the Joint Opinion Report on the State General Budget Law Proposal (OGE 2024).
The proposed General State Budget (OGE) 2024 is valued at 24.7 billion kwanzas, representing an increase in revenue of 22.9%, compared to the year 2023.
According to the report justifying the OGE proposal, of the total 24.7 billion kwanzas, 14.7 billion corresponds to fiscal expenditure, including interest on the debt.
According to the document, the other 10 billion are 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.
Regarding functional expenditure allocations, the OGE is marked by a high debt service, concentrating around 57.8% of total budget expenditure, with a total amount of Kz 14.3 billion, the report states.
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 Order Public, with 7.1% (Kz 1.7 billion) and the Economic sector (Kz 4.9%).
The OGE2024 proposal will also include resources to support the private sector, aiming to boost the economy, through a financial package of Kz 477.26 billion, of which Kz 147.26 billion for the capitalization of State financial institutions dedicated to granting credit to the national economy.
According to the justification report, Kz 330.00 billion will also be available for the issuance of sovereign guarantees to promote private investment.
Tax Scenario
The 2024 General State Budget proposal foresees 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 revenue and expenses of 20.08% and 20.06%, respectively.
It is expected to continue 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 sustainability law of public finances, as well as the reduction in the government debt ratio to 69.2% of GDP, against the expectation of closing at 79.9% in 2023.
The OGE 2024 background report presents the gross financing needs, which are valued at 10 billion kwanzas, that is, 13.7% of GDP, translating into a reduction of 1.1 percentage points of GDP, when compared to the closing estimate for 2023, in the order of 14.7% of GDP.
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