Luanda: The Angolan non-oil sector is projected to generate a substantial revenue of 10.7 billion kwanzas for the General State Budget (OGE) in 2026, marking a historic shift as it surpasses the oil sector, traditionally the dominant revenue source.

According to Angola Press News Agency, Finance Minister Vera Daves de Sousa stated that 7.43 billion kwanzas of this revenue is expected to come from non-oil taxes, with the remainder derived from fees, dividends, and the sale of state assets and participations. Presenting the OGE/2026 proposal to the National Assembly, which is currently reviewing the budget, Daves de Sousa highlighted that oil revenues are anticipated to reach 7.5 billion kwanzas, including 1.15 billion from the national concessionaire and 1.82 billion from the Oil Income Tax.

She further outlined that the OGE expects financing revenues of 15.04 billion kwanzas, sourced from both domestic (7.11 billion) and external markets (7.93 billion), with a significant portion of this linked to pre-contracted financing disbursements. In terms of expenditures, the budget proposes 4.01 billion kwanzas for goods and services, representing 12% of the OGE and 3% of GDP, a 6% reduction from the 2025 budget. Capital expenditures are set at 5.3 billion kwanzas (18% of OGE and 4% of GDP), while transfers amount to 2.96 billion kwanzas (9% of OGE and 2% of GDP).

For the transport sector, expenditures are estimated at 15.24 billion kwanzas, 10% lower than the 2025 budget, accounting for 46% of the OGE and 11% of GDP. The OGE/2026 proposal also includes a 15 billion kwanza financing line to boost the productive sector, alongside plans to capitalize public companies, especially banks and public funds aiding economic diversification.

Daves de Sousa announced tax relief measures for companies, including debt interest forgiveness for those settling tax obligations within the proposed timeframe. Additionally, 300 billion kwanzas are allocated to capitalize public companies, focusing on banks and public funds to further the economic diversification strategy.

In the social sector, the government aims to maintain investment levels despite a reduced expenditure envelope, ensuring the maintenance and operational functionality of existing infrastructure, with 211 billion kwanzas earmarked for maintenance and 238 billion for the National School Feeding Program. For the first time, direct fund distribution to schools will be implemented for maintenance purposes. Furthermore, 195 billion kwanzas are designated for school construction and rehabilitation nationwide.

Daves de Sousa also emphasized plans to enhance income for workers and families, proposing a 10% salary adjustment for civil service employees and facilitating career progression under the special regime. To extend income appreciation beyond the public sector, an exemption from Labor Income Tax is planned for salaries up to 150,000 kwanzas.

The OGE/2026 proposal, based on an average oil price of 61 dollars per barrel, sets total public revenues and expenses at 33.24 billion kwanzas.