Donors promise Mozambique some US$600 million for 2007 state budget

12 May 2006

Maputo, Mozambique, 12 May – the countries and international agencies that provide direct aid for Mozambique’s state budget said Thursday they had granted the country US$595 million for the 2007 budget, news agency AIM reported.

Of the figure announced Thursday, US$372 million was directly for the budget and had not been assigned to any project or sector, AIM said.

From the 17 partners that contributed to the 2005 and 2006 budgets the announced figure amounts to a real increase of US$44 million compared to the contribution given in 2006.

The 18th partner, the African Development Bank, which recently joined the donor group, pledged US$90 million in direct budgetary support, US&60 million for this year and US$30 million for 2007.

The remaining funds pledged Thursday are aimed at specific sectors – US$56 million for education, US$38 million for agricultural development, US$89 million for health, US$36 million for roads and US$5 million for water supply.

According to Mozambique’s Finance Minister, Manuel Chang, 48 percent of state budget funds come from direct foreign aid. (macauhub)