Angolan parliament approves smaller 2016 budget due to low oil price

LUANDA, Capital Markets in Africa: Angola’s parliament on Monday approved a smaller 2016 budget than it had originally planned, after lower oil prices hammered state revenues in Africa’s largest crude exporter.

The finance ministry said in July government that spending would be cut to $24 billion from $30 billion projected in the original 2016 budget after projected revenues were slashed to $18 billion from $24.4 billion.

“The 2016 state budget revision that we just approved is a necessary and totally justifiable exercise from the economical and social point of view due to the evolution of the oil price in the international market,” ruling party lawmaker Pedro Sebastião said.

Oil prices have dropped more than 60 percent since 2014, hurting the revenues of oil-producing countries.

 Source: Reuters Africa News