The debt contracted by the government of Angola on the international market is sustainable, as these are resources used to finance capital expenditure, in order to create wealth, Angola’s Finance Minister, Archer Mangueira said on Thursday in Luanda.
Mangueira, who was replying to questions raised by members of parliament during the discussion and consideration of the General State Budget (OGE) for 2017, said there were three ways to finance the budget, which are tax revenues, donations and loans.
Given that tax revenues fell as a result of the drop in oil prices on the international market, explained the minister, the state has to resort to external financing to make capital expenditure, which in the State Budget for 2017 have grown by 7% compared to the revised 2016 State Budget.
According to Mangueira, this is a clear sign that the government, despite meagre resources, continues to focus on public investments that can enable private investment.
Expenditure on servicing public debt in the 2017 State Budget approved on Thursday totals 36.28% of total expenditure, or 2.6 trillion kwanzas.
The 2017 State Budget was approved in general with 150 votes in favour, 32 against and one abstention and the specifics of the budget will now be discussed by the specialised commissions of the National Assembly for final approval in December.
The budget includes expenses amounting to 7.3 trillion kwanzas, compared to 6.9 trillion in the 2016 revised State Budget.
The 2017 State Budget outlines an overall deficit of 1.14 trillion kwanzas, about 5.8% of Gross Domestic Product (GDP), which will be covered using internal and external loans. (macauhub)