Mozambique: H1 revenue far from covering expenditure – Carta

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Mozambique: H1 revenue far from covering expenditure – Carta

8:25 CAT | 18 Aug 2021

File photo: DW

The Mozambican state in the first half of 2021 collected 127.4 billion meticais in revenue, equivalent to 48% of the annual forecast. This amount was far from covering all government expenditure, which reached 165.8 billion meticais, still only 45% of the annual budget.

To cover the deficit, the government says, in the State Budget Execution Report January-June 2021 (REO), that it had to resort to internal and external financing in the amounts of 25.4 billion meticais (internal) and 12 billion meticais (external), corresponding to 62.2% and 20.2% respectively.

In addition to the revenue and financing obtained, the government claims to have received external donations in the amount of 6.8 billion meticais, the equivalent to 20.1% of the annual forecast.

According to the REO for the first half, the combination of revenue, loans and donations totalled 167.4 billion meticais (with expenditures standing at 165.8 billion meticais), resulting in a variation of balances amounting to 1.5 billion meticais.

Of the total revenue (127.4 billion meticais), the report highlights the contribution of Income Tax (Corporate and Individuals) which saw a collection of 53.8 billion meticais, equivalent to 51.7% of the annual forecast, and a growth of 14.7% in nominal terms.

Taxes on Goods and Services, made up of Value Added Tax, Tax on Specific Consumption of National Production, Tax on Specific Consumption of Imported Products and Tax on Foreign Trade, contributed to total revenue in the amount of 45.3 billion meticais, equivalent to 45% of the target set for the year and an increase of 11.4%.

Of total government expenditure (which reached 165.8 billion meticais), the largest portion was allocated to operating needs (salaries, remuneration, etc.) totalling 115.8 billion meticais, with only 24.6 billion meticais allocated to investment.

By Evaristo Chilingue

Source: Carta de Moçambique