Revenue of Mozambican local authorities set at 10 billion meticais

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Revenue of Mozambican local authorities set at 10 billion meticais

2:12 CAT | 24 Feb 2016

Fifty-three Mozambican local authorities will between them have an estimated 10 billion meticais in revenue this year, six billion collected on their own account, and the rest made up of transfers from the state budget.

Transfers include the Municipal Compensation Fund, Local Government Initiative Fund and Strategic Programme Fund for Urban Poverty Reduction, the total amount estimated at 3.5 billion meticais corresponding to 15 percent of the total.

According to the state budget for 2016, overall municipal revenue is expected to increase about 15 percent this year. This growth will help the development of local authorities’ own revenues by 20 percent, followed by transfers from the state budget of about 13 percent.

However, a reduction in external financing of about 31 percent is projected, due to the late confirmation of funds by some foreign partners who support the country’s decentralization process.

The level of external funding to local authorities may however still increase’ depending on the resources disbursed by partners who support different programs in municipalities directly.

According to the budget, the 53 municipalities will spend five billion meticais on personnel (salaries and wages of employees, owners and members of municipal bodies) and goods and service, representing about 50 percent of the total spend.

This represents a reduction compared to last year, which means that local authorities have given priority to reducing spending.

The other five billion meticais is allocated to roads, rehabilitation of public buildings, drainage ditches, acquisition of machinery and equipment, office furniture and transport.

Source: Notícias