Africa-Press – Angola. The Angolan Parliament gave the “green light”, this Wednesday, to the implementation of the State General Budget Proposal (OGE) for the 2024 financial year, which provides, among others, a salary increase in the Public Service of around 5 Percent.
The document was approved with 119 votes in favor (MPLA and PHA), 83 against (UNITA) and one abstention from the PRS-FNLA Mixed parliamentary group, during the 2nd Extraordinary Plenary Meeting of the 2nd Legislative Session of the V Legislature.
The Minister of Finance, Vera Daves, welcomed the approval of the OGE, considering that the Executive now has a financial instrument to govern in 2024.
“Without this financial instrument, we would be forced to pay salaries and ensure the functioning of public institutions and ongoing projects continue”, he stressed.
The MPLA justified the favorable vote, through deputy Esteves Hilário, that this is the budget possible for the current circumstances, emphasizing that “those who have the vocation to govern do not compromise on the OGE and are always shaken by the spirit of the worse the better” .
For the parliamentarian, voting in favor of the OGE is an act of State responsibility and commitment to Angolans, who expect from the National Assembly, made up of their elected representatives, responsible stances that create legal instruments for the gradual resolution of Angolans’ problems.
“Today we saw, once again and without surprise, UNITA matching itself and voting against the General State Budget”, he lamented.
He emphasized that UNITA’s vote against, which is not accompanied by a counter budget proposal, reflects not only an already consolidated culture of total lack of commitment to the people.
For her part, deputy Bela Malaquias, from PHA, justified her vote in favor of the proposal based on the meticulous analysis of the amendments introduced, “the result of a democratic debate and constructive contributions in defense of the allocation of resources to critical sectors such as health, education, infrastructure and social development”.
However, he noted that the public debt situation, which exceeds 50 percent, raises justified concern, considering it imperative that the Government manage the debt responsibly, reviewing and reducing non-essential expenses.
“Our vote in favor of the OGE Proposal derives from the conviction that its non-approval or rejection would result in the worsening of the intense suffering of the majority of the Angolan population”, he expressed.
UNITA, through deputy Albertina Navita Ngolo, said it voted against the 2024 OGE Proposal as it considered that it “is riddled with errors induced in budget planning and clear discrepancies between the objectives recommended, either by the PDN 2023-2027 or by the proposal itself and the allocation of resources in the different sectors in terms of monetary values”.
In his view, the OGE-2024 “is far from reflecting the real situation of the economy, if we consider that 70 percent of it is informal”.
OGE 2024 numbers
The OGE-2024 Proposal estimates revenues and establishes expenses in an equal amount of kz 24,715,263,134,196.00 (twenty-four billion, seven hundred and fifteen million, two hundred and sixty-three million, one hundred and thirty-four thousand.e hundred and ninety-six kwanzas), reflecting an increase of 22.94 percent, compared to the 2023 OGE.
The estimated inflation rate for 2024 is 15.3 percent and, in accumulated terms, it reached the level of 27 percent in 2021, 13.9 percent in 2022 and the preliminary expectation is 17.8 percent. cent for 2023.
Gross Domestic Product (GDP) projections for 2024 point to growth of 2.84 percent, with the expectation for 2023 being 0.44 percent. In accumulated terms, it reached growth levels of 30.5 percent in 2022 and 1.2 percent in 2021.
Revenues
Current revenues were estimated at around 14 billion kwanzas, representing an increase of 9.14 percent, compared to the value of the 2023 OGE.
Capital revenues were estimated at around 10 billion kwanzas, representing an increase of 50.86 percent, compared to the value of the 2023 OGE.
Expenses
Current expenses were set at 12 billion kwanzas, representing an increase of 26.64 percent, compared to the value approved in the 2023 OGE.
Capital expenditure, set at around 12 billion kwanzas, is above capital revenues estimated at 10 billion kwanzas, representing a positive indicator, as part of current revenues will be used to cover financial expenses.
OGE 2024 projections point to GDP growth of 2.84 percent and an inflation rate of 15.3 percent.
The 2024 OGE Proposal estimates an average price of a barrel of oil at 65 dollars, thus considering the uncertainties and risks associated with the volatility of the price of a barrel on the international market.
This proposal considers concrete actions to boost the economy and improve the business environment, with emphasis on the provision of a line of financing valued at 153 million kwanzas, with competitive interest rates, to finance projects in the agricultural, industrial and commercial sectors.
Measures have also been approved that will make the process of attracting private investment less bureaucratic, through the Simplifica Project.
Social sector
The social sector was allocated an expenditure of around four billion kwanzas, which corresponds to 49.0 percent of primary fiscal expenditure (excluding public debt) and 20.1 percent of total expenditure.
The budget allocation for the health sector planned for the 2024 financial year has an increase of 1.7 percent when compared to the allocation approved in the 2023 OGE, while that of education represents an increase of 1 (one) percent compared to that of the 2023 OGE.
ANGOP
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