"The authorities should probably postpone the municipal elections to 2024, at least, after they are scheduled for 2023, to give the measures time to produce results", write the analysts in a note on the General State Budget.
In the note, sent to customers and to which Lusa had access, Eurasia says that "following a meager victory in the 2022 elections, the ruling party's proposal points to a redirection of public spending towards the social area, maintaining, at the same time, budgetary discipline".
In particular, Eurasia highlights the 30 percent increase in public spending in the Agriculture sector, seen as the main area in which Angola must invest in order to diversify its economy.
"This reflects the Government's view that improving productivity in the sector is essential to increase economic growth and ensure voter support", write the analysts, linking the postponement of municipal elections with the need to give Angolans time to feel the improvement in living conditions arising from the new priorities of the 2023 Budget.
"Following the slimmest victory of the Popular Movement for the Liberation of Angola (MPLA) in nearly 50 years in power, in August, the authorities are looking to increase spending on social services to increase popular support in the run-up to municipal elections; the increase in the number and frequency of public sector strikes, including the judicial sector, doctors, nurses and teachers, MPLA officials are also trying to increase public spending to avoid potentially disruptive social unrest", adds the analysis from Eurasia.
Analysts, moreover, consider that the elections will be postponed again to 2024, at least, and point out that "the legislation that sets the date of the elections has not yet been approved", in addition to also stressing that "it is still necessary to implement the legislation which created the provinces of Moxico and Cuando Cubango".
On December 9, the Government delivered the proposal for the General State Budget to the National Assembly, forecasting a budget surplus.
"We bring a proposal for a surplus OGE, that is, with a positive overall balance of 0.9 percent, with this we are continuing the trajectory started in 2018 with budget balances without a deficit", said the Minister of State for Economic Coordination.
Manuel Nunes Júnior, who was speaking at the seat of parliament, where he delivered the 2023 State Budget proposal, which estimates revenues and sets expenditures of 20.1 billion kwanzas, said that the instrument should maintain the country's economic growth trajectory.
The 2023 OGE proposal will fundamentally fulfill two objectives, namely the "continuation of the country's economic growth and the continuation of prudent budgetary management".
The document must be approved by the end of the year.
