Angola has predicted a deficit in General State Budget (OGE) 2023 of around 7.4 billion kwanzas by the end of the year.
The Secretary of State for Finance and Treasury, Ottoniel dos Santos, released the statistics, based on projections of the Ministry of Finance on OGE 2023 execution.
The studies are based on the price of a barrel of oil at 75 dollars, a production of 1.1 million barrels per day and an execution of 20 billion kwanzas.
Ottoniel dos Santos said in the first half of this year there was a deficit balance and a budget deficit of around 7.4 billion kwanzas.
“If things keep going like this, in terms of the execution of the State Budget, we will have to deal, until the end of the year, with a situation of a differential of around 10 billion dollars,” He said.
In order to ease the impact of the projections, Ottoniel dos Santos came up with measures to guarantee three levels of expenditure – salaries, debt service, expenditure on goods and capital services crucial for ensuring the normality and vision of the commitment of Government.
The official also announced government plans to continue with all projects that have an execution above 50% and with guaranteed funding, as well as those that have an execution above 80% and that depend on the ordinary resources of the Treasury for their continuation.
“A set of measures will also be implemented to ensure that the burden of budget execution on the treasury is alleviated not only in this financial year but also in subsequent ones. They include, in addition to the global review of the Public Investment Project (PIP) portfolio, an assessment and consolidation of expenditure.
Among the measures, the manager pointed to those that have to do with direct actions of the various bodies of the Angolan Executive with a view to reducing expenses related to travelling abroad, reducing the composition of delegations that are part of the outflows and other processes that will reduce the weight on the OGE.
He also announced plans to reduce the renewal of car fleets for the time being, which will be suspended, as well as to define more economical ceilings for the allocation of new vehicles for public office holders.
On real estate, he said that it is planned to sell all that are not protocol and belong to the State.
“We want, with these measures, which will be added to others to be announced to join efforts to ensure that we are within the budgetary limits defined in the law approving the State Budget and to continue with its budgetary commitments.
Source: Angola Press News Agency (APNA)