Despite improvements, Mozambique remains among the bottom ten in the world - Human Development Index
Mozambique was unable to finance the entire State Budget (OE) deficit of 2019. Of the 90.9 billion meticais needed to cover the deficit, the government obtained 48 billion meticais in external credits and donations and 28.5 billion meticais in domestic loans, thereby increasing public debt.
Internal revenues stood at 281.7 billion meticais, including 5.2 billion in capital gains obtained from the business between Eni and Exxon and still 54.1 billion meticais more in capital gains from the business between Anadarko and Total.
“Disbursements of external financing (donations and credits), to finance the budget deficit, reached 48 billion meticais, equivalent to 67.2 percent of the annual forecast,” the Budget Execution Report (REO) of January to December 2019 reveals. “Disbursements in External Credits reached 38.7 billion meticais and External Donations 9.3 billion meticais, corresponding to 88.5 percent and 33.6 percent of the annual forecast, respectively.”
The REO reveals that a large part of the credits were obtained from Japan (13.2 billion meticais), from the World Bank (9 billion meticais), and from the International Monetary Fund (7.4 billion meticais). The donations were obtained from partners funding education (3.4 billion meticais), from the World Bank (1.6 billion meticais), and from partners supporting health (1.1 billion meticais).
In the document made public this week, @Verdade found that the Mozambican government obtained another 28.5 billion meticais to finance the 2019 State Budget deficit through a loan of 19 billion meticais from the Bank of Mozambique, and the remainder by issuing treasury bonds and treasury bills, thereby increasing domestic public debt.
By Adérito CaldeiraSource: A Verdade
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