Luanda: The Angolan State Budget (OGE) draft law for the 2026 fiscal year was definitively approved by the National Assembly, with 120 votes in favor, 79 against, and no abstentions.
According to Angola Press News Agency, the document received the final "green light" from deputies during the 4th Plenary Meeting of the 5th Legislature. It forecasts revenues and expenditures of 33 billion and 240 billion kwanzas, representing a decrease of 4.1% compared to the 2025 State Budget. The budget, a crucial economic and financial management tool, was prepared based on an oil price of USD 61 and oil production of 1.05 million barrels per day.
For 2026, the OGE projects an inflation rate of 13.7%, which is lower than the 17.5% inflation rate projected for 2025. Additionally, a stronger and real growth in Gross Domestic Product (GDP) is expected at around 4.17%, driven by the non-oil sector projected at a growth rate of 4.73%, and the oil sector, including gas production, with a growth rate of 1.07%.
Among other notable aspects, the 2026 State Budget marks a milestone as the first in Angola's history to predict non-oil revenues exceeding oil revenues, indicating progress towards a less oil-dependent economy. The document underscores priorities in the social sector, allocating almost half of primary spending to health, education, and housing, alongside the expansion of social and school feeding programs.
The budget includes measures such as an exemption from paying Income Tax on Employment (IRT) for workers earning up to 150,000 kwanzas, aimed at protecting the income of families and workers within this salary bracket. A salary increase of approximately 10% is also foreseen for public sector workers, a measure intended to value public servants and adjust remuneration to the current economic context.
Additionally, the law emphasizes regulating the purchasing power of families and restoring liquidity to companies, enabling them to operate and create jobs. This initiative is seen as a key partnership with the State to reduce unemployment and food insecurity in the country. The OGE also proposes tax forgiveness on interest for companies fulfilling obligations to the General Tax Administration (AGT) between November 2025 and June 2026, serving as an incentive for tax compliance and participation in public tenders.
Regarding public finances, the 2026 State Budget aims for continuous improvement to make them increasingly robust and sustainable.
