Government reduced deficit to 8.9% in last four years – Finance Minister

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Government reduced deficit to 8.9% in last four years – Finance Minister

3:56 CAT | 16 Aug 2019

Picture: O País

The Mozambican government has managed to reduce the State Budget (OE) deficit from 9.7% of gross domestic product (GDP) in 2016 to a forecast 8.9% this year, Economy and Finance Minister Adriano Maleiane has revealed.

Quoted in today’s Notícias, Minister Maleiane says the improvement in the balance of public accounts has been achieved through increased revenue collection, rationalisation of public spending and reform of the state business sector.

“As a result of fiscal consolidation measures, the budget deficit went from 9.7% of GDP in 2016 to a forecast of 8.9% in 2019,” Maleiane is quoted as saying.

Although the executive has been forced to tighten budgets in recent years, the focus remains on channelling more resources to social areas, including health and education, he added.

“Notwithstanding the restrictive nature of the budget, we continue to prioritise the allocation of resources for the economic and social sectors to over 60% of total expenditure,” he said.

Maleiane cited the construction of more classrooms, more health facilities, roads and the promotion of agricultural marketing as evidence of efforts to reduce poverty.

Taking stock of macroeconomic performance over the last four years, Adriano Maleiane pointed out that average annual inflation reached 10.6% and GDP average growth stood at 4.4%.

Between 2015 and 2018, the average volume of exports reached US$15.3 billion (€13.8 billion), and of imports US$22.1 billion (€19.9 billion).

Source: Lusa