The Angolan government plans to tighten control over private investment, tying the respective implementation to the submission of quarterly plans and making it mandatory to obtain financing before work begins, indicate provisions of the draft state budget law for 2014.
The report accompanying the 2014 budget states that execution of new projects will be subject to having “secure financing in the budgeted source, ready executive plans, contracts signed and approved at corresponding levels, and physical and financial execution plans”.
Beyond the tighter rules governing public investment plans, the government also aims to “revise the system of subsidies for public companies, specifically suppliers of water and electric power service, with a view to reducing them and to promote efficiency”. The price system for fuels derived from crude oil will also be reviewed.
Angola’s 2014 budget forecasts a GDP growth rate of 8 percent, nearly two percentage points higher than the 6.3 percent estimated by the International Monetary Fund in a report released in October.
The macroeconomic scenario underlying the 2014 general state budget indicates that the Angolan economy should grow 8 percent in real terms next year, accelerating to 8.8 percent in 2015. This is more optimistic than what the IMF anticipated in its World Economic Outlook released on 8 October, which envisaged 6.3 percent growth, one point lower than in the previous forecast last April. (macauhub)