Mozambique’s 2007 State Budget continues to rely on foreign donors

14 December 2006

Maputo, Mozambique, 14 Dec – International contributions will continue to be crucial to the Mozambican State Budget, whose 2007 proposal, presented Wednesday in parliament, has a deficit of some 38.4 billion metical, officials said.

The budget proposal for 2007 was defended in parliament by Mozambican Finance Minister, Manuel Chang, who said that the revenue projection for next year was 32.5 billion metical, while expenditure would total around 70.9 billion metical (around US$2.8 billion).

Around a third of international donations shall be applied directly to the State Budget and the remainder to support projects, the minister said.

A number of countries, including Portugal, and international organizations directly finance Mozambique’s budget.

The 2007 proposal says that most of the expenditure will be applied to priority sector of the Action Plan for Reducing Poverty (PARPA), which will consume 68 percent of the budget.

Education, with 22 percent, infrastructures (20.5 percent) and health (12.4 percent) are the most benefited sectors, while defense expenditure continues to be reduced (2.3 percent). (macauhub)