Angola issues debt to execute State Budget for 2015

12 December 2014

The proposed Angolan State Budget for 2015, approved Thursday in Luanda, includes a deficit of 1.031 billion kwanza (US$10.114 billion), to be covered using external and domestic financing.

According to the government, which submitted the proposal approved Thursday, “the internal and external indebtedness, necessary to ensure the implementation of ongoing projects, represents about 35 percent of total resources, 18 percent domestically and 17 percent externally.”

The need to resort to bank loans and national and international credit lines to finance investment projects in the public sector, is the result of a drop in tax revenue for 2015, according to Angolan news agency Angop.

Drawn up as financial support for the 2013-2017 National Development Plan, the approved budget includes estimated revenues of 7.25 billion kwanza (US$71 billion).

Tax revenues (excluding finance disbursements and sale of assets) are expected to encrypt at 4.18 billion kwanza, amount equivalent to 31% of gross domestic product.

Of that amount, 60.96 percent is from oil revenues, representing 18.9 percent of gross domestic product (GDP) and 39.3 percent from the non-oil sector, representing 12.1 percent of GDP. (macauhub/AO)