Government proposes trimmed 2016 budget as oil woes persist

October 10, 2015 11:18 AM

According to a statement released late on Friday, investment spending will reach 562.8 billion CFA francs, more than two-thirds of which will be supported by exterior financing.

Gabon president, Ali Bongo

Gabon's cabinet has approved a trimmed 2016 budget of 2.626 trillion CFA francs ($4.55 billion) reflecting the need to carry on with a policy of belt-tightening amid a slump in world oil prices.

The petroleum-producing Central African state was forced to slash this year's budget by around 14 percent to 2.651 trillion CFA francs in April as the slide in crude prices dealt a blow to government revenues.

Aggravating the fiscal strain caused by the drop in crude prices, Gabon's oil output is expected to fall by around 8 percent this year due to ageing oil fields and the impact of strikes by workers.

Once an OPEC member, Gabon's current reserves will be exhausted in 30 years in the absence of new finds.