Mozambique: Central bank increases percentage of foreign currency to be converted
The IMF “did not” recommend lowering salaries of state officials and agents
10:00 CAT | 17 May 2023
File photo: A Verdade
The Minister of Economy and Finance, Ernesto Max Tonela, clarified last Thursday (11-05) in statements to newspaper @Verdade that the International Monetary Fund (IMF) “did not” recommend that the new salaries of State Employees and Agents in Mozambique be reduced.
Most of the media speculated that the IMF mission led by Mr. Pablo Lopez Murphy who was in Maputo between the 24th of April and the 5th of Ma, had recommended in its final communiqué that the government cut the recently increased salaries of public servants.
READ: IMF staff concludes visit to Mozambique
Speaking exclusively to @Verdade, Minister Tonela clarified that this interpretation is wrong: the IMF “did not make that recommendation; it even encouraged the government to take the measures it is taking”.
The IMF’s recommendation to “proceed with additional measures to reduce the annual wage bill to its approved budget level,” has” nothing to do with the Single Salary Table [TSU],” The Minister of Economy and Finance said..
The @Verdade newspaper has learned that the IMF recommendation, which is not new, is to reduce the wage bill as a proportion of gross domestic product (GDP). In 2021 the wage bill was 11.8% of GDP, rising to 13.7% percent last year and set to rise to 14% of GDP in 2023.
The government expects to reduce the civil service wage bill to 11.1% of GDP in 2025, in a context of implementation of the Single Salary Table (TSU) and the first export revenues from the Rovuma Basin natural gas.
The IMF’s recommendation is that the wage bill does not exceed 10% of GDP.
READ: Mozambique: Public wage bill must be ‘brought down’ – IMF
Source: A Verdade
Show comments
Also read
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.