Angola's public debt estimated at US $ 70 billion – Jornal Econômico

Angola's public debt estimated at US $ 70 billion - Jornal Econômico

The Angolan government estimated today that the country's public debt is around 70 billion dollars, guaranteeing that the Macroeconomic Stabilization Program "will reduce the debt burden", predicting a deficit-free budget by 2019.

The situation was reported today by the Secretary of State for the Angolan Budget, Aia Eza da Silva, when she presented the 2019 Macroeconomic Framework and the Expenditure Limits for Elaboration of the General State Budget (OGE) 2019.

Referring to the 83 structuring programs contained in the National Development Plan (NDP) 2018-2022, the minister recalled that the document outlines spending limits and urged provincial ministers and governors to set priorities.

"The plan is the ideal world, it is the world where, if we could, we would accomplish everything. But then we have to walk in the real world, which is the limitation of the resources we have, "he said.

Despite the rise in prices in the international markets of Brent, the benchmark oil export index in Angola, the Angolan Secretary of State for the Angolan Budget asked for "weighting", recalling that the country has incurred a lot of debt in recent years.

"Remember that we are asking for a lot of loans, our government debt today is around 70,000 million dollars. We will not be able to resolve this if you continue to spend on the money you are earning today, "he said.

"The Government has embarked on a Fiscal Consolidation Plan under the Macroeconomic Stabilization Program (PEM), and we are trying to prove to society and funding partners that we are serious about our plan," he added.

Speaking today at a meeting with the social partners of the Angolan Government on the proposal of the General State Budget (OGE) 2019, Aia Eza da Silva stressed that the PEM aims, among several purposes, to "reduce the level of debt" that the country has .

"We do not want to remain involved in fiscal deficits. If we put the expenditure that the entire Government asks for 2019 in the OGE, we have a fiscal deficit that is close to 10% of the Gross Domestic Product (GDP), "he explained.

In the field of reference assumptions for the 2016 State Budget, the State Secretary for the Angolan Budget made it known that next year's fiscal year "probably will not have a deficit."

"[O OGE] will have no deficit. But then, the rulers and civil society will come to us and say, 'If there is no deficit we can make expenses'. It means that the revenue is already getting bigger to the expense ", predicted.

However, he noted, the surplus of the revenues of the Budgets, from 2019, will serve to settle the debts contracted by the country in previous years.

"What they can not forget, especially in the next two or three years, is the liability. We will have the correct bills, beautiful for 2019. However, all the surplus that is obtained of this revenue goes to begin to settle the liabilities, "he argued.

Angola's Minister of State for Economic and Social Development, Manuel Nunes Júnior, who chaired the meeting, said that, in relation to public debt, "it will only be payable in a sustained manner if the country grows."

"If the country does not grow, we will have a difficult situation from a fiscal point of view. There is a basic rule that if the interest rate we borrowed is higher than the rate of economic growth, we will be in a difficult situation, "he said.

"We must ensure that our economic growth is sufficiently dynamic to allow this debt to be paid with new wealth created by economic growth," he concluded.

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