Mozambique: State Budget operating expenditure increased again in 2021 – Carta

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Mozambique: State Budget operating expenditure increased again in 2021 – Carta

2:41 CAT | 18 Feb 2022

File photo: DW

Mozambique’s Budget Execution Report (REO) for the year 2021, made available a few days ago by the Ministry of Economy and Finance (MEF), shows that the Government last year mobilised a total amount of 370.5 billion meticais. Of this amount, the Executive made expenses in the amount of 356.6 billion meticais, resulting in a difference between balances in the amount of 13.8 billion meticais.

In the amount obtained by the government in 2021, it appears that Operating Expenditure continued to grow, to the detriment of Investment Expenditure.

Expenses with the functioning of the public service reached the amount of 245.3 billion meticais in the period under analysis, having registered a growth of around 4.1% against the same period of the previous financial year.

However, the Investment Expenditure reached the amount of 64.2 billion meticais in the period under analysis, with 33 billion meticais in the internal component and 31 billion meticais in the external component. According to the 2021 REO, investment expenditure fell by 13%.

The annual report on the State Budget details that Personnel Expenditure amounted to 139 billion meticais. In relation to the same period of the previous financial year, Personnel Expenses grew by 5.8% in real terms, with Salaries and Remunerations growing by 6.6% and Other Personnel Expenses decreasing by 9.1%.

“The growth recorded in the Personnel Expenditure item is explained by the introduction of various Administrative Acts [new appointments, updates, promotions, career progressions and changes] which took place in the second half of 2020, the impact of which is reflected in the payroll for the year under analysis and other Administrative Acts that had not been foreseen in the respective year,” the REO justifies.

Other details on the 2021 REO indicate that Goods and Services absorbed the amount of 44 billion meticais, a growth of 7.1% in real terms, compared to the same period of the previous financial year. The repayment of the public debt cost the government 26 billion meticais, representing a decrease of 5.4% compared to 2020.

The 2021 REO also reports that Current Transfers reached the amount of 34 billion meticais, equivalent to a real growth of 1.2% in relation to 2020, due to the influence of the growth verified under the headings of Other transfers, Embassies, Transfers to Public and Private Administrations, and Transfers to Families [Households], whose growth ranged from 1.3% to 5.1%..

“In Current Transfers, the heading of Transfers to Families had a realisation of 27,271.1 million meticais, corresponding to 98.6% of the annual budget, having registered a growth of 4.1%. Also in terms of transfers, the Pensions Item reached the amount of 19,108.1 million meticais, representing a realisation of 99.7% and a growth of around 5.8% compared to the same period in 2020,” reads the report..

The government spent just over 1.5 billion meticais on subsidies, corresponding to a growth of 0.8% in real terms, compared to the same period in 2020..

The Years Ended heading, which under the terms of the legislation in force is used for the payment of residual expenses from previous years that have not been inscribed and settled in the respective years, shows an execution of 505.2 million meticais, corresponding to a 100% achievement.

Finally, Other Current Expenses reached 1.5 billion meticais, equivalent to a growth of around 221.2% in real terms. Capital Expenditure registered a realisation of 340.5 million meticais, corresponding to a growth of 30.3% in real terms.

By Evaristo Chilingue

Source: Carta de Moçambique