Luanda – The Draft State Budget (OGE) for 2023 estimated at 20.1 billion kwanzas was delivered Friday, in Luanda, to the Parliament Speaker, Carolina Cerqueira by the minister of State for Economic Coordination, Manuel Nunes Júnior.
Talking to the press after the ceremony for the delivery of the Draft Budget, Manuel Nunes Júnior said that the act is to comply with what the law demands, which states that in electoral years the Draft Budget should be delivered by 15 December.
The State minister adds that the Draft Budget for 2023 is essentially based on two main objectives, which are the continuation of the economic growth of the country and the pursuit of prudent budget management.
According to Manuel Nunes Júnior, the process of fiscal consolidation that is underway in the country will continue.
He said also that the government brings a surplus budget with an overall positive balance of 0.9%, that will continue what started in 2018 and was stopped in 2020 due to the several effects caused to the public finance and in the country's economy because of covid-19.
The official noted as well that the budget balances in 2.3% (2018), 0.99% in 2019, -1,9% in 2020 and in 2021 3,8%, while for 2022, the most recent previsions pointed to an equally positive balance of 2,7%.
While speaking Manuel Nunes Júnior highlighted the importance for an economy to have no deficit balances, considering that the country has less need to go into debt.
For this reason he explained that the public debt ratio in relation to Gross Domestic Product (GDP) is reducing also because of the fact that the forecast for the current year of 2022 points to a ratio of 56,1%, after having recorded figures like 128.7% a few years ago.
To Manuel Nunes Júnior, with the public debt and inflation reduction, it is expected a decrease in interest rates which are still relatively high in the country.
Continuation of economic growth
The minister of State for Economic Coordination also told journalists that it was essential to maintain the trajectory of economic growth that restarted in 2021.
“From 2016 to 2021 the country had a period of economic recession, that is, negative economic growth rates”, he said.
Hence, the continuation of the economic growth process will make it possible to reduce the levels of unemployment prevailing in the country.
With that, in the draft budget for 2023 all the Government's programmes that contribute to the increase of national production will be developed and intensified, with particular emphasis on Programme of Support for Production, Export Diversification and Import Substitution (PRODESI).
Inflation Reduction
According to the minister of Finance, Vera Daves, the Draft of the State Budget (OGE) for 2023 was prepared assuming stability in fiscal policy, so revenues were calculated assuming the fiscal policy and the measures that are in force.
She also said that regarding the tax benefits granted through the 2022 State Budget, the Executive is proposing that they be maintained, some of them related to the reduction of the Value Added Tax (VAT) rate of the basic food basket products, which went from 14 to 5%, in hotels and tourism (14% to 7%) and a set of other benefits to boost national production.
As regards the Strategic Food Reserve (REA), Vera Daves noted that the government will continue to make the necessary investment for it to remain functional, as they believe that through this the government will indirectly help to preserve the purchasing power of families.
On the other hand, she said, the National Reserve Bank of Angola (BNA) as part of its policy to stabilise price levels, plans to continue to implement the measures within its reach to reduce inflation and it was estimated that by the end of 2023, according to figures from the institution, the country may have inflation of around 11%.
With that, minister Vera Daves said, they should also have protection of purchasing power.
The proposed 20.1 billion kwanzas in the 2023 state budget is based on a barrel of oil with a reference price of US$75, of which 23.9% is earmarked for the social sector, 10% for the economic sector, 8.6% for defence, security and public order and 12.5% for general public services.
To the minister, this budget remains sensitive to gender, where it is foreseen 3.6 billion kwanzas in expenses, whose execution will have a positive impact on inclusion and with regard to their participation in society.
