Luanda, Angola, 11 Oct – Angola’s Minister for Planning, Ana Dias Lourenço, said Friday in Luanda that when the government carried out its budgetary adjustment in June, 2009, primary current expenditure (not counting interest on state debt) had been reduced by 6 percent.
Dias Lourenço noted that the costs of purchasing the State’s non-financial assets had been the key variables in the budgetary review, implemented due to the effects of the world economic crisis on the countries revenues.
The reduction, the minister said whilst speaking at the official launch of the 5th edition of Banking Under Analysis, by Deloitte Angola, aimed to ensure the State’s operating capacity in term of social services to the population.
The minister added that Angola had a heavy dependence on oil exports in terms of tax and foreign revenues, and the systematic drop in the price per barrel of oil, between June 2008 and December 2009, had had a devastating impact on export and tax revenues, as well as on international reserves, which are 80 percent dependent on oil
She said that the effects of these disturbances had been huge with international reserves falling 31 percent against 31 December 2008.
According to Dias Lourenço, export revenues, 97.5 percent of which are from oil sales, fell 36.2 percent against the same period of 2008 and tax revenues from oil fell from 40.8 percent of gross domestic product in 2008 to 23.4 percent of GDP in 2009.
“Gross National Income per inhabitant saw a drop of 17.2 percent,” she noted, adding that this significant slowdown had had consequences on the lives of the population, affected by the rate of inflation in 2009, of around 14 percent, which was higher than in 2008. (macauhub)