Mozambique: Govt transferred less money for social assistance to families in H1 – O País

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Mozambique: Govt transferred less money for social assistance to families in H1 – O País

3:31 CAT | 21 Aug 2020

The Mozambican government transferred 2,226 million meticais to families in social assistance in the first six months of this year, 8.5% less than in the same period in 2019.

Covid-19 is putting Mozambique’s socio-economic structure to the test. The first half of 2020 was overwhelming for many families and businesses. Many were thrown into unemployment, and the government has had to open the purse strings to provide social assistance to the most needy.

However, the budget execution for the first six of the year reveals that the government transferred less money for social assistance to families in the period of crisis, so to say, compared to the first half of 2019.

Specifically, between January and June 2020, 2,226.4 million meticais were transferred, against 2,358.5 million meticais in the same period of 2029 (8.5% less), a report by the Ministry of Economy and Finance consulted by “O País Económicas” reveals.

This year’s budget law set an amount of 4,546.5 million meticais for social assistance to Mozambican families, up from 4,394.5 million meticais.

Total Expenditure

In the first six months, total expenses reached 141,873.2 million meticais, corresponding to 41.1% of the annual budget, with the operating item reaching 102,780.3 million meticais and investment expenses 16,341.5 million meticais.

Both at central, provincial and municipal levels, there was the same investment in the first half of 2020, compared to the same period last year.

At central level, the Executive injected about 9.1 billion meticais, against 10.4 billion meticais invested between January and June 2019. In the provinces, it invested 300.9 million meticais (87.2% less), while 500.5 million meticais were invested in municipalities.

Financial operations stood at 22,751.1 million meticais, corresponding to 45%, 23% and 49.4% respectively.

The accounts show that operating expenses absorbed the equivalent of 72.4% of total expenses, investment expenses 11.5%, with 7% in the internal component and 4.5% in the external.

Salaries once again stood out in the expenses, with personnel reaching an achievement equivalent of 50.8% and in [expenses with] overtime, 36.9%.

In relation to the same period of the previous financial year, personnel expenses grew by 7.3% in real terms, with salaries and wages growing by 7.3%, while other charges decreased by 18.3%, as subsistence allowances inside and outside the country fell due to travel restrictions in the context of the Covid-19 pandemic.

“The growth registered in the personnel expenses item, is explained by the introduction of several administrative acts (new fixations, updates, promotions, progressions and career changes) occurred in the second semester of 2019, whose impact is reflected in the payslips this year and other administrative acts that had not been foreseen in the respective exercise,” the Ministry of Economy and Finance explains.

The execution of the State Budget in the period January to June 2020 resulted in the budgetary balance from which State revenues of 110,206.4 million meticais were charged, the equivalent to 46.8% of the annual forecast, and expenses were incurred whose totals reached 141,873.2 million meticais, corresponding to 41.1% of the annual budget.

To cover the deficit, the State had to resort to domestic financing in the amount of 29,454.2 million meticais, 14.274.4 million meticais from other capital income and 15.179.8 million meticais from domestic loans, corresponding to 53.2% of the forecast, and also to external financing in the amount of 34,831.8 million meticais, equivalent to 52.0% of the budget allocation.

By Edson Arante

Source: O País