Mozambique: Banks cut benchmark interest rate to 18% in May
in file CoM
The Mozambican government is still looking to fill an estimated 50% shortfall in this year’s general election budget.
With the elections less than three months away, the government has not yet secured full funding for the process, which estimates put at 14.6 billion meticais. By the end of the first quarter of this year, the executive had sourced 6.5 billion meticais, or 44 percent, and has since then been seeking support for the remaining nearly eight million meticais.
Economy and Finance Minister Adriano Maleiane said on Sunday that financing for that amount was not yet guaranteed.
“The National Election Commission (CNE) has been revisiting the budget. It has reduced it a little, but we are still negotiating part of the funding,” Maleiane explained after a parliamentary hearing at the Commission on Constitutional Affairs, Human Rights and Legality.
While knocking on the doors of potential lenders, the government remains cautious and is working on two alternative scenarios. If external funding comes through, the executive may propose an amending budget. Otherwise, the way forward is to sacrifice several projects.
“We are working on it. If we come to the conclusion that we have a financier, it would be justifiable to submit an amending budget, otherwise we will have to cut spending, somewhere,” Minister Maleiane said.
“Unfortunately, there is not much in our spending to squeeze. We would have to sacrifice some small investment, but as the elections are also an investment in democratisation, we will have to do this,” he said.
The general elections, which this year and for the first time include the election of provincial governors, are scheduled for 15 October.
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