Anchoring Fiscal Policy in Angola: Strategies for Stability and Growth

Angola faces a challenging trade-off between reducing debt vulnerabilities and meeting pressing development spending needs. Against this backdrop, country-specific considerations for fiscal rules and a forward-looking calibration exercise provide insights to help guide the design of an optimal fiscal framework. This paper does not seek to identify an optimal operational rule for Angola. It takes the existing Fiscal Sustainability Law as given and aims to inform the authorities’ planned review by outlining a calibration framework for the debt anchor, the associated primary and non-oil primary balance targets, and the key strengths and limitations of alternative operating rules.