The bill of the General State Budget (OGE) for 2016 in Angola was approved Tuesday by the majority in the National Assembly (the country’s parliament) although the Minister of Finance said risks associated to public revenues remained in place.
Minister Armando Manuel said that these risks remain a reality, similar to what happened in 2015, when it was necessary to rectify the state budget approved at the end of 2014, due to the sharp fall in the price of oil, the country’s principal export.
Therefore, the State Budget for 2016 includes a number of restrictions such as the limitation on new hires and promotions within the civil service, “with some exceptions for the health sector, education and for new services that require new staff to enable them to operate.”
The OGE was drafted on the basis of a price per barrel of oil of US$45 and oil production of 1.888 million barrels per day.
The macroeconomic scenario underlying the budget forecasts a real gross domestic product (GDP) growth of 3.3 percent, a budget deficit of 5.5 percent and expenses of 6.4 trillion kwanzas (US$47 billion).
The finance minister quoted by Angolan news agency Angop, said in parliament that the non-oil sector was expected to post growth close to 2 percent, and the main contributions would come from energy (12 percent), construction (3.5 percent), industry manufacturing (2.5 percent) and agriculture (2.5 percent).
The social sector will absorb 43.2 percent of spending, general public services 22.9 percent, defence, security and public order 20.2 percent, while the economic sector should absorb a share of 13.7 percent of the state budget.
The budget’s description, examined and approved during the first ordinary plenary session of the 4th Legislative Session of the 3rd Legislature, will go to specialised committees for review and should be approved definitively by 15 December. (macauhub/AO)