Luanda, Aug. 13, 2026 (Lusa) - In the second quarter of 2026, the Angolan government spent three times as much on debt servicing as it did on the social sector, including education, health, social protection, housing, culture and the environment.
According to the general state budget (OGE) implementation report, published by the Ministry of Finance (Minfin), financial costs associated with debt amounted to 5.70 trillion kwanzas (€5.32 billion) in the quarter, equivalent to 56% of total expenditure by function.
During the same period, expenditure on the social sector stood at 1.67 trillion kwanzas (€1.56 billion), or 16% of the total.
In terms of the rate of expenditure, financial costs consumed 37% of the budget allocated for the whole year and rose by 123% compared with the same period in 2025, whilst the social sector spent only 20% of its annual allocation.
The Ministry of Finance highlights the burden of debt servicing as a priority set out in the 2026 state budget, with the aim of improving fiscal fundamentals, strengthening macroeconomic stability and ensuring debt sustainability.
External public debt operations, with expenditure of around 3.92 trillion kwanzas (€3.66 billion), corresponding to 45% of the annual allocation, accounted for the largest share of financial costs.
In the social sector, the subsectors with the highest levels of expenditure were Housing and Community Services, Education and Health, with 556.40 billion kwanzas (€519.2 million), 407.35 billion kwanzas (€380.1 million) and 373.67 billion kwanzas (€348.7 million), respectively.
In this quarter, public debt rose again, with a total of 70.24 trillion kwanzas (€65.55 billion) at the end of June, up 7% on the previous quarter and up 20% year-on-year.
Government debt accounted for 94% of this total, whilst the debt of the state-owned companies Sonangol (oil) and TAAG (aviation) made up the remaining 6%, having almost doubled compared with the previous quarter, mainly due to new financing for the state-owned oil company.
Overall, between April and June, the State collected revenue of 9.85 trillion kwanzas (€9.19 billion), corresponding to 30% of the estimated annual revenue and a 66% increase compared with the same period last year, and incurred expenditure of 10.24 trillion kwanzas (€9.56 billion), equivalent to 31% of total budgeted expenditure and a 59% increase compared with the same period in 2025, resulting in a budget deficit of 396.39 billion kwanzas (€369.9 million).
Analysed by function, the highest execution rate was recorded in the defence and security sector, which spent 1.03 trillion kwanzas (€958.3 million) in the quarter, corresponding to 41% of the funds allocated to it for the year – the highest proportion.
The quarter benefited from higher-than-expected oil revenues, with Brent crude trading at an average of $102 per barrel – around 67% above the $61 forecast in the state budget – against a backdrop of geopolitical tension in the Middle East.
These revenues were primarily allocated to the repayment of government liabilities, both in the financial component – through the servicing of public debt – and in the non-financial component – through the settlement of arrears owed to suppliers – enabling a 7% reduction in domestic debt servicing compared with the previous quarter, amounting to 2.54 trillion kwanzas (€2.37 billion).
During this period, diamond production totalled 4.11 million carats, at an average price of $78.01 per carat.
Compared with the previous quarter, there was a 23.95% increase in the volume produced, accompanied by a fall in the average price per carat.
RCR/AYLS // AYLS
Lusa
