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Sun, 01 Nov 2020 09:41 - Updated Sun, 01 Nov 2020 09:40

Draft General State Budget delivered to Parliament

Luanda - The General State Budget (OGE) for 2021 was handed to the National Assembly this Friday, providing revenues and expenses of 14.78 billion kwanzas.

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Parliament receives draft State Budget for 2021

Photo: Francisco Miúdo

Despite financial limitations, the programmatic document includes a 9.9 percent increase in relation to the revised State Budget, with the social sector, with 38.5 percent, and the economic sector, with 15.5 percent, absorbing more tax revenues.

The amount to be spent by the state in 2021 is forecast based on a conservative price of a barrel of oil, the main source of national revenue, of $39, even so, with some fears, as the Covid-19 pandemic has greatly affected this sector.

At the beginning of the disease, the price was even below USD 30.

In terms of economic growth, 2021 will be, as in the last five years, a dark period, with an overall rate of zero, as opposed to 2020, when the revised OGE rate is 3.3 percent, still negative.

The recession is justified, according to the Minister of State for Economic Coordination, Manuel Nunes Júnior, who handed the document to the speaker of the National Assembly, Fernando da Piedade Dias dos Santos, on the grounds that oil sector revenues had fallen by 6.2 percent.

A fiscal deficit of 2.2 percent of GDP is also expected, whilst in 2020 it is also expected to fall by 1.5 percent.

As for the inflation rate, which this year was set at 25 percent due to the effects of Covid-19, a reduction of around 6.3 percent is expected, that is, it should stabilise at 18.7 percent.

The only satisfactory index for 2021 is related to the non-oil sector, where growth of 2.1 percent is expected, which the minister said was encouraging, as it created the most jobs, as well as meeting the challenges of diversifying the economy.

Social and economic sectors

According to Minister Manuel Nunes Júnior, the main objectives of the OGE/2021 are fiscal consolidation, control of public debt and the process of revitalising national production.

In relation to the latter, the idea is to increase national production in order to reduce imports, by revitalising the productive sector, as well as reducing dependence on oil.

The allocation of the largest share to the social sector, according to the Minister of Finance, Vera Daves, who was also part of the Government team, aims to respond to the Government's commitment to boost the education, especially, health and social protection sectors.

Budget goes to plenary on Tuesday

MP Joaquim David, in a statement to the press, said that the state budget would be discussed in general on Tuesday 3 November.

He said that the conditions were in place for it to be approved within the legally established deadlines.

 He also assured the participation of civil society and all sectors in the discussion, despite the constraints imposed by the biosecurity rules due to Covid-19 pandemic.

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