The approval of the amending state budget proposal for 2015 includes cutting public spending by a third and a downward review of GDP growth forecast to 6.6 percent, according to the Angolan press.
The document, which was approved at a cabinet meeting on Friday, was redrafted due to a fall in oil revenue, following a sharp drop in the price per barrel, and outlines a budget deficit for 2015 of 6.2 percent of GDP against 7.6 percent in the budget currently in place.
“This revision is mainly due to a drop in oil revenue of about 59 percent, which is the result of a new benchmark oil price, and a rice of US$40 per barrel is being considered, compared to the initial estimate of US$81,” Minister Armando Manuel said after the cabinet meeting.
The minister added that the review of public accounts for this year provides for a reduction of total state revenues – involving tax, equity and debt revenues – of 7.2 trillion kwanza (US$68.5 billion) to 5.4 trillion kwanza (US$51.4 billion).
In this scenario, and through implementation of a budget that will ensure, according to the Minister of Finance, the “minimum operation” of state institutions, falls in oil revenue are offset by significant cuts in spending, with the exception of public sector salaries. (macauhub/AO)