Bloomberg News

Angola Increases Budget Spending After Oil Price Beats Forecast

June 23, 2011

     June 23 (Bloomberg) -- Angola, sub-Saharan Africa’s second biggest oil producer, increased its budget spending this year by 228 billion kwanza ($2.4 billion) after higher oil prices boosted revenue, according to a finance ministry report submitted to parliament.

The southern African nation’s expenditure will rise to 4.38 trillion kwanza, the document, handed to Bloomberg News today in Luanda, the capital, show.

The extra money came from more revenue because of an increase in crude oil prices to more than the $68 a barrel estimate the government used for the 2011 budget, it said. The state has increased its reference price to $95.35 a barrel.

Cabinda crude surged to $125.46 a barrel in April and was at $112.59 today, according to data compiled by Bloomberg. Angola is producing an average 1.64 million barrels a day and will probably pump 620.5 million barrel this year, the finance ministry said.

The government will use 208 billion kwanza of the additional spending to build roads and bridges and help pay for an election.

--Editors: Gordon Bell, Antony Sguazzin

To contact the reporter on this story: Candido Mendes in Luanda at cmendes6@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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