Angolan parliament approves 2007 budget revision

10 August 2007

Luanda, Angola, 10 Aug – Angolan MPs have approved an amended state budget for this year with budget deficit revised upwards to 9 percent, receipts down by 5 percent and state expenditure up by 27 percent, officials said.

The budget amendment was approved Thursday in the Luanda National Assembly by 88 votes for the proposals and 34 abstentions by lawmakers.

The revised budget for 2007 forecasts GDP growth of 19.8 percent, less than the 31.2 percent originally predicted due to slower-than-expected growth of Angola’s oil sector (13.6 percent instead of 33.6 percent). Expansion of the non-oil sector remains as predicted at 27.9 percent.

Angola’s social sector is the biggest recipient of state spending, with 31 percent of total expenditure in the revised budget compared to 28 percent in the original proposals. The economic infrastructures sector, including roads, power lines, water distribution networks, fisheries and transport, sees its total state expenditure share climb from 14 percent to 21 percent.

Interest repayment on state loans falls from 22 percent to 13 percent in the revised budget for 2007, indicating a transfer of resources from Angola’s economic sector to the social expenditure. (macauhub)