Mozambique tax incentives raise doubts
IESE (File photo)
A survey by Institute for Economic and Social Studies researchers has concluded that there are sums of money in the state budget averaging 63 billion meticais per year that are not accounted for and whose destination is not made public.
The paper, written by economists António Francisco and Ivan Semedo and called “The hidden face of the Mozambican state Budget: Are Cash Balances fictitious?”, begins by asking: “How can it be explained that 25 percent of the total financial resources allocated to the Mozambican state, in the form of a cash balance, are kept in the margins of the Economic and Social Plan (PES) and its financial expression in the state budget, as if it were a hidden or parallel fund?”
“Although they are reported in the General State Account and audited and confirmed by the Administrative Court, cash balances are managed as a new type of extra-budgetary flow, remaining outside budget implementation, and neither does the Assembly of the Republic decide on them when considering the levels of expenditure, loans, subsidies, guarantees and donations,” it goes on to say.
According to the March 13 IESE publication, the value concerned averaged 63 billion meticais (around US$924.1 million) in the last three general state budgets (2013-2015). This is more than the capital of the 114 companies with state participation, four times larger than the share capital of the 14 wholly owned public companies, and enough to pay off 91 percent of the total 2015 internal debt.
You may access the full (PDF) text hereSource: O País
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