Matola, Mozambique, 14 March – The Mozambican government is finalising the details of a revised 2022 State Budget proposal, which will soon be presented to the country’s parliament, the Finance Minister said in Matola Friday.
Minister Manuel Chang said that the government planned for the proposal to be discussed in May and added that the review was due to the increase in prices of foodstuffs and fuel on the national market, which had an impact on public expenditure.
According to the 2011 Economic and Social Plan (PES), the State Budget for this year includes expenditure of 132.403 billion meticals, of which around 56 percent are related to internal resources and 44 percent 44 are from foreign sources, including loans and donations.
According to the 2011 PES, consigning a larger amount of resources to current expenditure takes into account, amongst other factors, providing location subsidies to State workers and subsidies on the price of bread and transport, as part of the measures to reduce the cost of living set out by the government.
The prices of fuel and food, notably grains, are rising on the international market, which affects Mozambique because it does not produce enough to meet the needs of the population.
Mozambique’s dependence on outside sources of income will continue, as despite measures taken during the 2008 crisis to increase production and productivity, the country still has a food deficit. (macauhub)