Luanda, Angola, 26 July – Angola’s budget deficit for this year has been revised upwards to 9 percent due to a fall in receipts of 5 percent and extra state expenditure of 27 percent, Angola’s finance minister has said.

José Pedro de Morais was speaking Wednesday after a meeting of the Luanda government to approve a revised 2007 budget, mainly due to depreciation of the national currency and lower estimates of annual oil production.

A government statement said GDP for this year has been revised downwards from 31.2 percent to 19.8 percent due to lower than forecast oil-sector growth, down to 13.6 percent from 33.6 percent. Non-oil sector economic expansion remains as forecast at 27.9 percent.

Angola’s social sector gets is expenditure boosted from 28 percent to 31 percent in the revised fiscal blueprint, while infrastructure spending (roads, power and water supply networks) rises from 14 percent to 24 percent of total state expenditure.

The new budget also forecasts loan interest rates dropping to 13 percent from 22 percent.

Luanda’s finance minister said the budget revision includes all expenditure needed for national reconstruction, pledging there are no spending shortfalls in the new proposals that are primarily funded from national sources. (macauhub)