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Angola’s amended State Budget cuts public spending by third

Angola’s amended State Budget proposal for 2015 includes cutting public spending by a third and reducing estimates for GDP growth to 6.6 percent, local media report.

The proposal, approved on Friday by the Council of Ministers, comes after a slump in oil prices in the international market.

The Government will ask parliament to revise down the oil price assumption in the 2015 budget to US$40 per barrel from its earlier projection of US$81 per barrel, due to crude prices tumbling globally.

Finance Minister Armando Manuel was quoted saying that the fall in oil revenue will be offset by significant cuts in spending, with the exception of public sector salaries.

Meanwhile, a recent inventory of each oil wells in Angola resulted in a production forecast of 1.8 million barrels per day for 2015, said Angola’s Minister of Planning and Territorial Development.

Minister Job Graça said that would represent a 9.8 percent increase over 2014, when the daily average was 1.7 million barrels.