Mozambique: Capital gains boost tax revenue to €4.1B
Picture: O País
Promotions, career progressions, career changes and other administrative acts in the second half of last year had a significant impact on the Mozambican state’s payroll in the first six months of this year.
Salary expenditure reached about 54 billion meticais [around US$971.6 million, at current exchange rates] between January and June 2019, 13.4 percent more than in the same period last year, a Ministry of Economy and Finance budget execution report to which STV has had access indicates.
However, despite the increase in the state payroll – which runs counter International Monetary Fund recommendations – the report speaks of “budgetary balance”.
“The execution of the State Budget from January to June 2019 resulted in a budgetary balance with State revenues at 104.6 billion meticais, equivalent to 42.8% of the 133.2 billion meticais annual forecast , that is, 39.1% of the annual budget,” the report reads.
“To cover the deficit, the State had to resort to internal and external financing in the amounts of 11.6 and 19.3 billion, corresponding to 60% and 27.1%, respectively,” the report further discloses.
The 2019 State Budget sets as its main targets the collection of state revenues of 249.5 billion meticais, including the 5.2 billion capital gains collected in 2017, and state expenditure of 340 billion meticais, resulting in a budget deficit of 90.9 billion meticais.
By Edson AranteSource: O País
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