The Angolan government has reviewed the State Budget for 2019 to adjust it a drop in oil prices, according to a statement from the Economic Commission of the Council of Ministers.
“The review of the 2019 Budget results from the need to adjust the current amount of revenues and expenses to the new economic reality, based on a reduction in tax revenue, driven by the intensification of oil price volatility on the international market,” the statement said.
The statement said that this volatility, “has created macroeconomic imbalances, hampering budget execution and jeopardising the achievement of strategic macro-executive objectives.”
The new bill, to be submitted to the country’s parliament, includes expenditure estimated at 10.37 billion kwanzas, a reduction of around 9.0% over the amount registered in the State Budget that is still in force.
This new State Budget was prepared based on a reference price of a barrel of oil of US$55, compared with a basis of US$68 per barrel on which the budget approved by the National Assembly was drawn up.
The Economic Commission of the Council of Ministers also approved the Balance Sheet Report of the Macroeconomic Stabilisation Programme for the year 2018, which reports on the implementation of measures taken by the government to overcome the constraints and imbalances in various sectors of the economy, as well as to improve macroeconomic indicators.
The balance sheet of the Macroeconomic Stabilisation Programme points to recovery, albeit a slight one, of the main macroeconomic indicators of the country’s economy, according to the statement. (Macauhub)