Mozambican government may revise state budget due to lack of funds

8 March 2010

Maputo, Mozambique, 8 Mar – The Mozambican government may have to revise the 2010 state budget if donors fail to come through with funds promised by this coming April, Finance Minister Manuel Chang stated.

About half of Mozambique’s state budget is financed by a group of 19 countries and institutions which usually make the first portion of the money available in January, but this year they have still not done so.

The amount transferred annually by donors is about US$600 million, 125 million of which is delivered in the first quarter, Chang said, cited on Saturday by Mozambique’s AIM news agency.

For the first quarter Mozambique needs US$175 million, but donors have yet to make funds available, indicating that they can only begin providing funds in April.

The government has been able to pay salaries and debts until now, but may have to revise the budget in April if backers fail to keep their promises, the minister said.

In last October’s general elections some donor countries, mainly from northern Europe, criticized the exclusion from the electoral process of about ten parties, a situation which may have originated the delay in the promised assistance.

(macauhub)

MACAUHUB FRENCH