Angola’s public accounts are this year expected to post a deficit of 405.4 billion kwanzas (US$4.22 billion), which will be the first deficit since 2009, according to a Budget analysis carried out by Action for Rural and environmental Development (Acção para o Desenvolvimento Rural e Ambiente – ADRA) and by the OPSA consultancy.
The deficit, which is the equivalent of 3.4 percent of Gross Domestic Product, is the result of the difference between revenues of 4570.4 billion kwanzas or 38.2 percent of GDP and expenditure of 4975.8 billion kwanzas or 41.6 percent of GDP.
According to Angolan news agency Angop, ADRA and OPSA compared the State Budget for 2013 with that for 2012 and concluded that revenues had dropped by 4.1 percent whilst expenses rose 26.7 percent.
“The increase in expenditure of 1048.8 billion kwanzas is higher than that of the Gross Domestic Product itself, which increases by just 932.1 billion kwanzas,” according to the analysis published Tuesday in Luanda.
On handing in the State Budget proposal for 2013 on 14 December 2012, Finance Minister Carlos Lopes said that the budget deficit would be funded by making use of reserves from previous years and by taking on loans on the internal and foreign markets. (macauhub)