Half of Mozambique’s budget dependent on foreign aid until 2009

14 March 2007

Maputo, Mozambique, 14 March – Mozambique’s state budget will be reliant on outside aid for 49 percent of its expenditure until 2009, regardless of forecast revenue increases, according to a document sent to parliament by the Mozambican government.

The document from the Council of Ministers on the Plan of Action for Reducing Absolute Poverty 2006-2009 (PARPA II), which amongst other aims plans to reduce poverty from 54 percent of the population in 2003 to 45 percent in 2009, said that external dependence would continue to be high even though PARPA II forecasts an increase in public revenues in real terms.

The financing of the Mozambican budget is provided by a partnership between Mozambique and a group of 18 countries (G-18) Thursday, including Portugal.

The group also includes Germany, Belgium, Canada, Denmark, Spain, Finland, France, the Netherlands, Ireland, Italy, the United Kingdom, Sweden and Switzerland, the World Bank, the African Development Bank and the European Commission.

The aim of direct aid to the Mozambican budget – one of the biggest joint programs in Africa, both in terms of volume and the number of partners involved – is to ensure the efficiency of financial aid in the implementation of PARPA II. (macauhub)