Angola - Public finance



Liberal monetary policies financed large public sector deficits, which led to high inflation and price distortions. Military expenditures consumed an enormous portion of the national budget. Since the 1970s, Angola has relied heavily on oil exports for revenue. However, revenues from oil sales went down as the result of a fall in the international price of oil in the late 1990s. Until 1991, Angola had a Soviet-style, centrally planned economy. The government planned privatization for the 1990s, but most companies remain state-run as of 2000, including the major energy companies and the diamond distributor.

The US Central Intelligence Agency (CIA) estimates that in 2000 Angola's central government took in revenues of approximately $928 million and had expenditures of $2.5 billion including capital expenditures of $963 million. Overall, the government registered a deficit of approximately $1.6 billion. External debt totaled $10.4 billion.

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