AO-Fiscal Management Programmatic DPL

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The development objective of the First Fiscal Management Development Policy Financing Project for Angola is to strengthen the country’s fiscal management to create the fiscal space needed to better protect the poor and vulnerable. This document presents a programmatic operation to support the twin goals of eradicating extreme poverty and boosting shared prosperity in Angola, by strengthening policy and institutional reforms to diversify revenue sources, improve the allocative efficiency of public expenditures, and introduce a safety net program. Pillar one supports the establishment of fiscal rules for the oil price differential account and the modernization of tax administration and tax policy to increase the share of non-oil tax revenue. Pillar two aims to increase value for money in public investment and allocate more resources to investments with high socioeconomic returns and better targeted towards the poor, by supporting a comprehensive reform of the public investment management system. Pillar three supports the introduction of a targeted cash transfer, while phasing out consumer fuel subsidies and establishing a monitoring system to track the impact of these measures on the poor. The program will help Angola meet its financing needs for the revised 2015 budget, thus helping to protect social gains.