The Angolan Finance Ministry has ordered a cut of around 30% in the spending laid out in the State Budget for 2019, Angolan financial newspaper Valor Económico reported.
The newspaper said that the ministry confirmed the order but not the percentage disclosed and added that the cut will be particularly felt by some entities, such as the provincial governments.
A ministry source gave the newspaper assurances that the decision would not jeopardise the promised civil service salary increase of 12%.
“First of all, no cuts were announced in the public expenditure registered in the approved State Budget, and secondly, the payment of salaries of civil servants is one of the government’s priorities,” the source said.
The decision to cut public expenditure is based on a need to carry out a budget readjustment, as the level of spending set out in the budget is based on oil being priced at US$68 per barrel, higher than the current price on international markets.
The estimated oil production in the State Budget has also been compromised after an agreement reached by OPEC, which forces Angola to cut around 49,000 barrels a day in the first half of the year, shooting for production of just over 1.4 million barrels a day compared with the previous forecast of 1.570 million barrels per day.
The 2019 State Budget outlines expenditure of 11.3 trillion kwanzas, an increase of 17.1% over the expenses of 9.685 trillion kwanzas set out in the General State Budget for 2018. (macauhub)