Angolan government recognises impact of economic crisis and 40 pct fall in revenues

18 June 2009

Luanda, Angola, 18 June – The Angolan Finance Minister said Tuesday in Luanda that the economic crisis had affected the country as a result of the “abrupt” fall in the price of oil, which led to a 40 percent drop in revenue for the State.

Severim de Morais was speaking after the delivery by the Government’s economic team of the revised State Budget (OGE) for the current year, to the President of the National Assembly, Fernando Dias dos Santos “Nandó,” with a view to its approval by members of parliament.

“The revised OGE was drawn up based on a price per barrel of oil of US$37 and economic growth was adapted to the commitments the government made to the Organisation of Petroleum Exporting Countries (OPEC),” the minister noted.

The minister, who said the new OGE proposal was “conservative” noted that a new article had been introduced in the document pointing out that all surplus revenues resulting from a rise in oil prices (currently over US$70 per barrel) should be kept as a reserve for the National Treasury.

According to the Finance Minister, the new OGE for 2009 is in line with the commitments made to OPEC, which reduced the production quotas of its member countries.

De Morais gave assurances that despite the established oil price of US$37 and a drop in production, the revised OGE would cover the minimum required expenditure of the State, specifically in the Education, Health and public administration sectors. (macauhub)