The Angolan government has reviewed down the growth rate of its Gross Domestic Product (GDP), due to slow development in its oil sector, an official source indicated here.
The government meeting Wednesday, chaired by president José Eduardo dos Santos, was expecting the oil sector to increase by 33.6 percent, but it was forced to review the forecasts down to 13.6 percent, while maintaining the growth rate for the non-oil sector at 27.9 percent.
In order to support the reconstruction of the country, the government has decided to increase by 27% the level of the overall budget expenditure (OGE) for 2007, which was initially estimated at 2.5 trillion kwanzas (about US$30 billion), while the federal revenue has decreased by 5%.
According to Finance minister, José Pedro de Morais, such measures are meant to readjust to the new macro economic conditions, including the appreciation of the local currency (kwanza) and the review oil production downwards.
De Morais said interest rates on loans have been reduced from 22% to 13% for the OGE, therefore revealing a transfer of resources from the business sector (roads, electric energy transport lines, water production and distribution stations, fishing and transport) to the social sector that was initially allocated 31% of the overall national budget.
Meanwhihle, the government recommends strict application of the tax forecasts, and insists on sound management in line with the macro economic measures set for 2007.