The General State Budget (OGE) Law for the 2021 financial year, with estimated revenues of £16.5M and expenses fixed in the same amount, came into force last Friday, January 1st.
The document approved last December 14, by the Parliament, and promulgated on the 22nd of the same month, by the President of the Republic, João Lourenço, is already in the country’s Official Gazette.
With an average price of US$39 a barrel of oil, OGE 2021 integrates the budgets of the central and local government bodies of the State, public institutes, autonomous services and funds, social security, subsidies and transfers to be carried out, among other bodies.
In this budget, the social sector, which accounts for 39.5%, and the economic sector, with 15.5% are the most covered.
The Executive foresees 12.5 percent of the OGE 2021for health and education (Health 5.6% & Education 6.83% respectively).
It also predicts an accumulated inflation rate of 18.7% and a growth rate of 2.1% for non-oil products.
The gross financing needs for the OGE are estimated at 6.9billion kwanzas (£7,7M and 16.3% of GDP), representing a 6.4% reduction.
The net needs are estimated at 1.7billion Kwanzas, representing 4.1% of GDP, an amount to be obtained through internal or external financing, as well as the sale of assets.
The Angolan Executive believes that the global macroeconomic context in which the OGE 2021 will be executed is characterized by a double shock caused by Covid-19.
Like other diplomas, OGE 2021 gives the President of the Republic the competence to grant State guarantees to national economic operators, for projects within the scope of the economic diversification programme.
The diploma sets £282M as a limit for the granting of guarantees by the State during the 2021 financial year.