Angola to seek financing to execute 2015’s budget

Angola’s State Budget for 2015, approved last week by the country’s parliament, outlines a deficit of 1.03 billion kwanza (US$10.1 million). The Government said the shortfall is to be covered by financing from domestic and international credit lines.

According to the Government, “the internal and external debt, necessary to ensure the implementation of ongoing projects, represents about 35 percent of total resources, being 18 percent domestic and 17 percent international.”

The need to seek for bank loans and to make use of credit lines to finance public sector investments results from the expected drop in tax revenue for 2015 due to the slump in oil prices, according to Angolan news agency Angop.

The approved budget estimates revenues of US$71 billion, with tax revenues (excluding finance disbursements and assets sales) expected at US$41 billion, equivalent to 31 percent of the country’s gross domestic product.