Luanda: The draft General State Budget (OGE) for 2026, which is currently under debate in parliament, is the first in Angola’s history to anticipate surpassing oil revenues with non-oil revenues. This signals progress towards a less oil-dependent economy. The Minister of State for Economic Coordination, José de Lima Massano, reiterated this fact on Monday when presenting the proposed OGE for the 2026 fiscal year.
According to Angola Press News Agency, Massano reaffirmed the Angolan government’s commitment to strategic options and fiscal objectives in line with the priorities and objectives of the 2023-2027 National Development Plan and the 2026-2031 fiscal strategy guidelines. Massano emphasized the importance of focusing on the social sector, including education, health, and housing. This approach places people at the center of public policies and strengthens investments to improve family well-being and promote a fairer and more inclusive society. He stated that real GDP growth is projected at around 4.17%,
driven once again by the non-oil sector, which is expected to grow at a rate of 4.73%.
The 2026 General State Budget is estimated at 33.24 trillion kwanzas, which is a 4.02% reduction compared to the 2025 budget. According to the minister, the greater weight of non-oil revenue in the 2026 General State Budget does not imply a lesser importance of the strategic oil sector. On the contrary, he added, this milestone should be interpreted as a sign of the country’s transition towards a more diversified, integrated, and sustainable economy in which everyone plays an active role in economic and social development.
He stated that the year 2026 will present increased challenges to the national economy and public finances, having emphasized the need for economic diversification, continued quality public spending, and a more efficient tax collection system.
Massano highlighted that the social sector absorbs the largest percentage of primary expenditure, namely 47.46%, highlighting the maintenance of the Social and M
onetary Transfer Program, KWENDA, and the expansion of the National School Feeding Program to all basic education schools linked to the public sector. In 2026, healthcare will benefit directly from the proposed increase in the Special Consumption Tax on Tobacco and High-Alcohol Content Beverages, he emphasized. He also said, the programs for expanding and improving the national health system are budgeted at 598.84 billion kwanzas.
The 2026 State Budget proposal also includes incentives for the economy, businesses, and job creation, to continue to boost economic growth, promote diversification and food security, and support companies in creating job opportunities. The government will maintain the agenda of improving the business environment, including the creation of a specific incentive scheme for startups. He said that investments in infrastructure will continue, with emphasis on electricity, drinking water supply, expansion of roads, the digital network, and logistics platforms, especially along the Lobito
corridor. Capital expenditures are projected at 5.37 trillion Kwanzas.
Regarding economic activity, after the tax amnesty, cancellation of fines and interest, and the 30% reduction in the tax base that occurred post-Covid, the government considers in the 2026 State Budget proposal the cancellation of interest on tax fines incurred up to October 31, 2025. José de Lima Massano advocated for greater robustness in public finances to consolidate their sustainability. Prepared based on an average oil barrel price of 61 US dollars, the 2026 State Budget Proposal sets public revenues and expenditures at 33.24 trillion Kwanzas.