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The Assembly of the Republic yesterday approved the Provincial Finance Law, which imposes the number of inhabitants and the territorial extension as the basis for the calculation of the allocation of the State Budget destined to each province.
The law, approved by consensus and generally, states that the number of inhabitants of the province will count 75% and its territorial extension 25% in defining the state funds to be transferred to each province.
“The limit for each province is equal to the number of inhabitants of the province divided by the number of inhabitants of the country times 75 percent of the total limit, excluding the state’s general expenses, plus the territorial area of the province divided by the territorial area of the country, 25 percent of the total limit, excluding state general expenses,” Economy and Finance Minister Adriano Maleiane explained in presenting the proposed legislation.
The Provincial Finance Law also establishes that decentralised governance bodies and local authorities enjoy administrative, financial and patrimonial autonomy.
Adriano Maleiane pointed out that the law imposes rules for the revision, monitoring and evaluation of a province’s plan and budget, and also deals with matters such as public investment, treasury, loans, revenues, expenses and transfers, plus the rules for the distribution of limits by province.
The law comes as a result of the amendment of the Constitution of the Republic of May 2018, which establishes as decentralised entities the provincial and district governing bodies, as well as local authorities.
The document is part of the decentralisation package agreed between the central government and Renamo as part of the negotiations for lasting peace in the country.