Angola to overhaul budget on revenue drop

(MENAFN) Angola, Africa's second-largest oil producer, announced austerity measures and overhaul budget to deal with a severe drop in revenue on oil prices collapse, Arab News reported.

Angola attracts over 70 percent of its income from oil resources. A 50 percent collapse in oil prices, with supply outstripping demand, means a big revenue hit for the government.

The country's budget was adopted last year and the government planned to spend more on public services than on defense and security for the first time since the end of 2002 civil war.

"Some public spending will be cut, including fuel subsidies, projects will be postponed, and the government's fiscal discipline will be strengthened," the President warned.