Mozambique: Parliament approves 2008 state budget

10 December 2007

Maputo, Mozambique, 10 Dec – The Mozambican parliament Friday approved the general state budget for 2008, over half of which is financed by international donors, as well as the Economic and Social Plan for 2008, officials said.

The budget outlines public expenditure of 89 billion meticais (around US$3.6 billion), a rise of 22 percent as compared with the 2007 budget.

Revenues in 2008 are estimated at 38.8 billion meticais, which leaves a budget deficit of 50.2 billion meticais (a little over US$2 billion) which must be entirely covered by international aid.

Since 2004 the Mozambican budget has been partially funded by a group of 19 states and organizations, including Germany, Belgium, Canada, Denmark, Spain, Finland, France, the Netherlands, Ireland, Italy, Portugal, the United Kingdom, Sweden and Switzerland, the World Bank, the African Development Bank and the European Commission.

The Economic and Social Plan for 2008, in its turn, has as its main objectives, economic growth of 7 percent and an inflation rate of no more than 5.7 percent.

The plan also aims to increase exports by 2 percent and maintain level of international reserves that is sufficient to cover approximately four months of imports of goods and services. (macauhub)