Africa-Press – Angola. The president of the Industrial Association of Angola (AIA), José Severino, highlighted in Luanda, the flexibility of the 2024 General State Budget (OGE) proposal, containing much more guidance for State support for economic development.
Speaking to journalists at the National Assembly, on the sidelines of the meeting with social partners, within the scope of the OGE assessment, discussion and voting process, he stressed that there is greater openness on the part of the Government (Ministry of Finance) which has reinforced funds linked to institutions of the State such as the Credit Guarantee Fund (FGC), Fundo Activo de Capital de Risco Angolano ( FACRA ) and others.
José Severino made it known that the AIA presents proposals to improve the business environment and create more jobs in the country, but the Government must have a more comprehensive policy across the country, “each region has its own particularities, in a mountainous region I cannot do cereals, but I can make coffee and cocoa.”
José Severino points out that there are “around 20 thousand companies that have left the formal circuit, because the accounting system linked to VAT is very complicated”.
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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