Angola: Parliament Approves Draft Law On Sustainability of Finances

Luanda — The National Assembly (AN) approved, in general, this Friday, the Proposed Law on Sustainability of Public Finances, with 130 votes in favor, no against and 42 abstentions.

The draft Law provides for the creation in Parliament of the Public Accounts Committee, a mechanism that is part of the strengthening of the effectiveness of medium-term public finance management instruments, as well as tax rules that contribute to the implementation of tax policy.

With the proposal, the Government intends to strengthen the rules governing the implementation of fiscal policy, focusing on macroeconomic stabilisation and the sustainability of public finances.

In presenting the diploma, the Minister of Finance, Vera Daves, said that the diploma stems from the macro fiscal context that the country lives.

She recalled that since the second half of 2014 the Angolan economy has been going through an economic cycle marked by a deceleration translated into a negative Gross Domestic Product of approximately 2.6 percent in 2016 and 1.8 percent in 2018.

According to Vera Daves, this situation is due to weak oil production, a sector that plays a preponderant role in the country's economy and particularly in balancing public finances.

This context, she said, led to a fall in tax revenues, and in recent years budget deficits have led the Government to make debts, leading to their worsening.

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