Mozambican government to reduce ceiling for budget deficit to 0.3 percent

24 September 2010

Maputo, Mozambique, 24 Sept – The government of Mozambique plans to reduce the ceiling for its budget deficit from 2.6 percent to 0.3 percent, as of 2011, as part of measures to contain expenditure, the Mozambican finance minister said in Maputo.

“The proposal (for the 2011 State Budget), that we are going to submit to parliament also focuses on rationalisation and has indicators that show exactly the reduction of expenditure that will happen, mainly on travel, expenses payments and fuel,” he said.

“There are figures that will be reduced so that we can accommodate other types of expenditure that are related to levels of society, namely subsidies, both direct and indirect,” the minister added.

Next October, the government plans to submit the State Budget proposal, which includes public expenditure of 128 billion meticals (US$3.546 billion) and revenues of 73.274 billion meticals (US$2.018 billion).

The expected deficit of 55 billion meticals (US$1.515 billion) will be covered by outside resources.

For 2011, the Mozambican government estimates that the economy will post growth of 7.2 percent, inflation will be contained at 8 percent and exports of goods will provide revenues of US$2.402 billion. (macauhub)