(Ecofin Agency) - Angola has decided to cut its expenditure by half this year as a result of the decline in the prices of oil.

The country records approximately two-thirds of fiscal revenue in crude oil since crude prices fell in June last year putting the second-largest crude oil producer in Africa at risk.

While representing the President Jose Eduardo dos Santos at the state-of –the –nation address in Luanda, Vice president Manuel Vicente (picture) revealed to lawmakers that public investment was reduced to 53%.

“We have had a contraction in fiscal policy, which has been guided by an amending of the state budget, embodied in a reduction of spending and more cautious revenue management. All this was possible thanks to the intervention of monetary policy and the injection of resources to cope with the current situation” Vicente said.

He further added that the economy is to abstain from recession and expand 4% in 2015, stating that the nation’s debt is likely to reach 45.8% of gross domestic product (GDP).

“At this time, the macroeconomic indicators show us some stability and more encouraging prospects for the future, although they require a continuation of work that has been done so far,” Angola’s Vice President told Bloomberg.