The draft law that approves the 2022 State Budget, approved by the Council of Ministers, states that the levels of uncertainty in the oil sector "should remain", taking as reference price 59 dollars per barrel.
The proposal foresees an inflation rate of 18 percent in 2022 (less than the 27 percent that the National Bank of Angola forecasts for 2021) and "an acceleration of the Angolan economy" with the Gross Domestic Product (GDP) growing by 2.4 percent compared to the "moderate expansion" forecast for 2021.
The forecast is justified by the positive contributions of the oil and non-oil sectors, with growth expectations of 1.6 percent and 3.1 percent, respectively.
The OGE includes estimated revenues of 18.8 billion kwanzas and expenses of the same amount, an increase of 27.7 percent compared to the 2021 OGE, which forecast expenses and revenues of 14.7 billion kwanzas, with the reference price of the $39 barrel.
According to the statement from the Council of Ministers, the social sector will absorb 18.6 percent of total expenditure, which means an increase of 24.7 percent compared to the previous State Budget, with emphasis on Education, Health and Social Protection, with a weight of 13.1 percent, 9.4 percent and 6.8 percent of primary fiscal expenditure.
The document stresses that the Angolan government prioritizes the control of the pandemic in the budget "to save lives and promote the resumption of growth", accelerating vaccination, measures aimed at strengthening the stability of the tax system and improving the quality of public spending, support for economy and defense of citizens' incomes and consumption to boost growth and strengthen public financing instruments.
State Budget Proposal foresees revenues and expenses in the amount of 18.8 billion kwanzas
The Government approved the proposal for the General State Budget (OGE) for 2022, which foresees revenues and expenses in the amount of 26.9 billion euros and a price of 59 dollars for a barrel of oil.
