State Budget for 2026 Fiscal Year Officially Begins Implementation January 1

Luanda: The General State Budget (OGE) for the 2026 fiscal year officially begins implementation on January 1, following its timely publication in the Official State Gazette on December 30, 2025, through Law No. 14/25. The State Budget, whose proposal was submitted to the National Assembly on October 31, 2025, was definitively approved on December 15, with 120 votes in favor (MPLA, PHA and the mixed PRS-FNLA group), 79 against (UNITA) and no abstentions. According to Angola Press News Agency, the 2026 State Budget is prepared based on an average oil barrel price of 61 US dollars and a production of 1.05 million barrels per day, estimating public revenues and expenditures at 33.2 trillion kwanzas. This projection reflects a decrease of 4.02% compared to the 2025 State Budget, which was approved with 34.6 trillion kwanzas. The budget reaffirms the commitment to food security by aiming to strengthen domestic production capacity and reduce dependence on imports of essential foods. The Agricultural Production Pr omotion Program (PFPA) is highlighted with an estimated allocation of 151.79 billion kwanzas. Additionally, the budget sets a ceiling of 1.3 trillion kwanzas for granting sovereign guarantees to support private projects of national strategic interest, aiming to boost economic diversification. The financial incentive package includes the allocation of 435 billion kwanzas for the regularization of certified commercial debts with state suppliers to strengthen the financial credibility of the public sector and stimulate national productive capacity. A credit line valued at 15 billion kwanzas is also planned to support the productive sector and stimulate job creation. The fiscal year 2026 will see the initiation of the Youth Employment and Opportunities Project (PEOJ), targeting unemployed young people aged 16 to 35. This initiative allocates 10.1 billion kwanzas to the Angolan National Employment Fund (FUNEA) to promote labor market integration and youth entrepreneurship. The State Budget continues to prioriti ze the social sector, with a significant allocation to health, education, and housing, while also expanding social and school feeding programs. Measures include exemption from Income Tax (IRT) for workers earning up to 150,000 kwanzas and a planned salary increase of approximately 10% for public sector workers to adjust salaries to the economic context. To promote tax compliance, the 2026 State Budget provides tax forgiveness on interest for companies that honor their fiscal responsibilities from November 2025 to June 2026. This initiative aims to enable companies to participate in state public tenders. Notably, the 2026 State Budget is the first in Angola's history where non-oil revenues exceed oil revenues, indicating progress toward a less oil-dependent economy. Oil revenues are estimated at 7.50 trillion kwanzas, while non-oil revenues are projected at 10.7 trillion kwanzas. The budget also projects a 4.17% increase in real GDP, supported by 4.73% growth in the non-oil sector. The inflation rate is est imated at 13.7% for 2026, reflecting a reduction from the updated 17.54% forecast for the end of 2025. Debt servicing expenses in 2026 are expected to decrease to around 46%, with spending on goods and services projected to be 4.01 trillion kwanzas, a 6% decrease from the current fiscal year.