Discussion of Angola’s budget for 2019 to begin on 14 November

5 November 2018

Members of the Angolan parliament are due on 14 November to begin their discussion of the General State Budget (OGE) proposal for 2019, according to a decision by the meeting of leaders of the parliamentary groups.

Daily state newspaper Jornal de Angola reported that the OGE proposal outlines an extraordinary regime of pardoning interest on fines and procedural costs of tax, customs and social security debts owed until 31 December, 2017, with a 10% discount for a one-off payment.

The so-called Exceptional Regime for Tax, Customs and Social Security Regularisation establishes that individual and corporate taxpayers should sign up by 30 June, 2019, “and may be required to pay taxes and contributions due by means of monthly installment plans, provided that the debt is totally settled by 31 December 2019.”

The macroeconomic scenario set out in the budget proposal estimates a budget surplus of 0.6% in 2018, which increases to 1.5% of Gross Domestic Product (GDP) in 2019, which reverses the expectations set out in the initial document for 2018, which included an estimated deficit of 3.2%.

Over the past four years, government accounts have recorded high consecutive deficits, of 5.3% in 2017, 7.00% in 2016, 3.3% in 2015 and 6.6% of GDP in 2014.

The government expects a contraction of oil production in 2019 to a combined 573 million barrels, with an increase in the estimated price to US$68 per barrel, according to the document.

The budget forecast for oil production in 2018 is 620 million barrels per day, at an average price set out in the proposed budget of US$50 per barrel. (macauhub)