Malawi: Mutharika says Nsanje port awaits Mozambique approval - promises development
The Mozambican parliament today started discussing the 2019 State Budget, which prioritises infrastructures and social sectors, a source in the Assembly of the Republic has told Lusa.
The same source explained that the debate does not include the preliminary agreement with holders of Mozambican foreign debt announced in November. That matter is expected to be analysed at a sitting dedicated to that subject alone, although it may later lead to a budgetary adjustment.
“Notwithstanding the restrictive character of the State Budget, the Government plans to maintain, in proportional terms, a greater budget allocation to the priority economic and social sectors,” the document accompanying the Draft State Budget and seen by Lusa reads.
The proposal for 2019 provides for revenues of around 249 billion meticais (3.58 billion Euros) for a total expenditure of 340 billion meticais (4.885 billion Euros).
The majority of expenditure, 57.8%, is directed towards operating expenses – 30% for investment and 12.2% for financial operations.
The overall deficit (as a percentage of GDP) is expected to increase from 8.1% this year to 8.9% in 2019, mainly due to the expense of the general elections of October 15 and the start of investments in natural gas exploitation.
In 2017, according to the general State accounts, the deficit was 4.6%.
The 2019 State Budget is based on forecasts of 4.7% in GDP growth, an annual average inflation rate of about 6.5% and US$5.16 billion in exports of goods.
The executive lays out measures to contain public spending, three of which are designed to contain the salaries payroll – which currently continues to consume 55% of tax revenue, above the southern African average, Economy and Finance Minister Adriano Maleiane said in October.
Apart from the Health, Education and Agriculture sectors, there will only be one hiring for every three vacancies, with priority given to the movement of personnel within the public administration.
To improve tax revenue, a revision of the specific regimes of taxation and fiscal benefits for oil operations and mining activity is on the table.Source: Lusa
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