Execution of Angola’s state budget in 2009 sees deficit of US$6 billion

4 November 2010

Luanda, Angola, 5 Nov – The execution of the 2009 State Budget in Angola posted a deficit of 555.7 billion kwanzas (US$6 billion), according to the report presented to parliament for discussion and voting Thursday.

The Finance Minister, Carlos Lopes, noted that the deficit had been the result of the “highly negative” impact of the world financial crisis on the Angolan economy, by affecting the main export product and the country’s main source of tax revenues – oil – having reduced its production by 5.1 percent, a situation that had not been seen since 2003.

In 2009, the Angolan state collected revenues of 1.464 trillion kwanzas and had expenditure of 2.02 trillion kwanzas.

As a result, Lopes said, the country’s overall economic growth, measured by its gross domestic product (GDP), fell to 2.7 percent in 2009, its tax revenues and Balance of Payments posted deficits, international reserves and internal credit fell and the kwanza depreciated against the dollar, by 19 percent.

The rate of inflation, in its turn, remained high, at 13.9 percent against a target of 12.5 percent.

In this adverse economic climate, a positive notes was that it was possible to contain public spending and in 2009 short term debt was restructured, from a total of US$8 billion in 2008 to US$1.8 billion in 2009.

In general terms, the minister said, there was a drop of 52 percent in revenues, that is a reduction of more than half in current revenues, which saw a drop of 52.1 percent, including a 72 percent fall in oil revenues. (macauhub)