Mozambique government approves draft state budget of EUR 5.1 billion for 2018

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Mozambique government approves draft state budget of EUR 5.1 billion for 2018

7:31 CAT | 22 Sep 2017

presidencia.govmz (File photo)

The government approved today the draft of the State Budget (OE) of 2018, with expenses of 300.7 billion meticais (4.1 billion Euros) against revenues of 222.860 billion meticais (3.05 billion Euros ).

The draft for the 2018 State Budget, which will be submitted to the Assembly of the Republic at the end of this month, was approved in an extraordinary session of the Council of Ministers, held today in Maputo.

The document reflects an increase in expenditure compared to 2017, where it reached 272.3 billion meticais (3.1 billion Euros).

“There will be a deficit of 77.009 billion meticais [1.056 billion Euros], corresponding to 9.7 percent of the GDP, against 10.7 percent of the GDP in 2017,” the Council of Ministers spokesperson said at a press conference.

Ana Comoana added that the budget deficit will be covered through internal credit, corresponding to 2.3 percent of the GDP, and external credit, which will reach 5.4 percent of the GDP, as well as external donations, equivalent to 2.6 percent of the GDP .

Asked about if, in the budget heading of external donations, Mozambican government is expecting the resumption of aid from the international partners who suspended their support following the so-called hidden debts scandal, Ana Comoana admitted the possibility, noting that there is an effort to normalise cooperation with the donors.

“Donations can come from all sides, they can come from traditional donors, they can come from others with whom Mozambique will conclude agreements,” said Ana Comoana.

The Council of Ministers spokesperson emphasised that the 2018 draft State Budget focuses on fiscal consolidation, namely by improving revenue collection for the state, containing public spending and reforming the business sector.

“As priorities, all the main economic sectors are pointed out and, in addition to these, the social sectors, namely Education and Health,” stressed Ana Comoana.