Revenues lower than expenses leave OGE for the first two months with a deficit – news

The General State Budget (OGE-2023) for the second quarter presented a deficit of 568.94 billion Kwanzas, while the first quarter generated a deficit of 42.93 billion Kwanzas, according to the Execution Balance Report of the Ministry of Finance

For economist Marlino Sambongue, budget execution for the first two quarters of this year was deficient because total revenues were lower than expenses, that is, what the State collected, whether in current revenues or in capital revenues, was below . Marlino Sambongue said that expenses were much higher.

The reason for this reduction results from the fact that, on the one hand, the average price of a barrel of oil was below what was expected, on the other hand, there was a reduction in the quantities of oil produced which led to total revenue had lower than expected revenue. The economist highlighted that there was an increase in financial expenses, which is the payment of interest on debt capital, reasons that for the interlocutor led to an increase in expenses in relation to income.

Eduardo Manuel, another economist, understands that, for revenue to become sufficient, the solution will be to increase revenue not through taxation, but through the increase or creation of new taxes. The Government, he continued, could increase the credit available to companies so that more companies can appear on the market and those that already exist can expand and diversify their activities.

Eduardo Manuel stressed that the Executive must intensify investment in the creation and expansion of industries through existing programs, for the diversification of the economy, through cooperation with national and international banks to grant credit at subsidized rates to national and foreign entrepreneurs .

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Public debt service

According to data from the Ministry of Finance, in the first quarter of this year, debt service, with banks and local investors of treasury bond buyers, was 1.06 billion kwanzas and in the second quarter it was 1.58 billions of kwanzas. The Ministry clarifies that in the first quarter of this year debt service was paid 510.75 billion and in the second quarter 1.55 billion kwanzas. In relation to the debt stock, in the third quarter the value stood at 30.86 billion kwanzas and in the fourth quarter 36.25 billion kwanzas.

Domestic debt service corresponded to 1.63 billion kwanzas, representing an increase of around 84%, compared to the same period last year. Regarding the execution of the external debt service, payments were made in the order of 813.54 billion kwanzas, representing a reduction of around 9% compared to the 3rd quarter of 2022.

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