The revised OGE 2020 proposal, due to the covid-19 pandemic, is estimated at 13.5 billion kwanzas, with a deficit of 4 percent compared to the previous proposal.
The Minister of Finance, in an interview published by Jornal de Angola, stressed that the revised budget warns that the taxpayer is even more burdened.
"This exercise is not easy in a nation like ours, where there are so many challenges to face, from the social point of view, from the point of view of economic incentives, from the point of view of infrastructure, but we have to, more and more , find solutions and models in which we have the active participation of the private sector, and the State can live according to its possibilities ", said the minister.
According to the minister, the debt 'stock is at levels that demand caution and some care, therefore, the exercise of pragmatism and realism assumes an increasing importance ".
Vera Daves stressed that there were many cuts in the public investment portfolio for those projects that have no associated external or internal financing line or funds that resulted from the decapitalization of the Sovereign Fund of Angola.
The minister pointed out that there was a redefinition of priorities and all projects whose source of funding were ordinary treasury resources were cut from the investment portfolio.
The official admitted that the negative growth of the economy is a concern, so measures are being taken to improve the business environment and encourage national production.
The holder of the Finance portfolio stressed that it will take time, but the dynamism in national production is already visible, which the Government intends to support in its acceleration, through the reduction of fiscal costs of inputs and the allocation of public resources for initiatives that foster the private sector.
With a Gross Domestic Product of around 3.6 per cent, Vera Daves indicated that the revised budget loses 30 percent of revenue compared to what is in force, which translates into a fiscal deficit.
"We had a surplus in 2018, we had a surplus in 2019 and in 2020, most likely, with all the assumptions we have on the table, we will have a deficit," he said.
To face this situation, Vera Daves said that there is no escape from the use of financing, because "the capacity to cut expenses has a limit".
"Whatever results from equity income and what we manage to fit in with the privatization program will help to bridge the gap, and we will still have to resort to financing," he said.
The revised OGE 2020 proposal predicts a 4 percent deficit at 15 billion kwanzas from the previous proposal and with an average oil price of $ 33 a barrel.
The parliament meets, on Tuesday, in an extraordinary session, for discussion and voting on the generality of the proposed law that approves the revised OGE for the financial year 2020, with political declarations also foreseen.
