Budget implementation in Angola records deficit of US$397 million from January to March

15 July 2016

Expenditure included in the Angolan State Budget carried out in the first quarter of 2016 exceeded revenues in the same period by 66.202 billion kwanzas (US$397 million), according to the Secretary of State for the Budget.

Alcides Safeca, presenting the report on execution of the State Budget in the first quarter of 2016 to members of parliament, noted the revenue collected between January and March – 674.858 million kwanzas – accounted for just 10% of the amount forecast for the whole year.

The State Budget for 2016, in its revised version, was based on a price per barrel of exported oil of US$45, but in the first quarter some sales were made at as little as US$30, affecting the collection of tax revenues.

Expenditure amounted to 741.060 billion kwanzas, or 12% of expenditure for the whole year, so the budget execution for the first quarter of 2016 recorded a deficit of 66.202 million kwanzas (US$397 million).

The budget execution figures for the first quarter, the Secretary of State said, had forced the government to use “the legal instrument for expense blocking,” which blocks investments and transfers.

The report was approved Wednesday by the parliamentary committees for the economy and finance and was forwarded for discussion and a final overall vote in the parliamentary plenary on 21 July. (macauhub/AO)