Mozambique’s state budget proposal for 2012 points to economic growth of 7.5 pct

28 September 2011

Maputo, Mozambique, 28 Sept – The State Budget proposal for 2012 in Mozambique is based on a macroeconomic scenario outlining economic growth of 7.5 percent and average annual inflation of 7.2 percent, Mozambique’s finance minister, Manuela Chang said Tuesday in Maputo.

The document also outlines exports of goods and services totalling US$3.02 billion, which is a rise of some 17 percent, which is explained by the start of coal exports.

The proposal includes the budget deficit dropping to 15.5 percent of Gross Domestic Product (GDP), as compared to an estimate of 16.8 percent this year, which is the result of a projected rise in revenues from 21.3 percent to 22 percent of GDP or 0.7 percentage points, which correspond to 16 billion meticals.

“Donations will fall from 9.5 percent to 8 percent of GDP, foreign loans will maintain growth of around 6.8 percent,” he said.

Total budget expenditure will increase from 141 billion meticals in 2011 to 162.3 billion meticals in 2012, a year that will be affected by significant streamlining of state spending.

The State Budget is expected to continue focusing on education, health, agriculture and construction of infrastructures, and for education for example, spending will increase from 16.5 percent of the total in 2011 to 17.7 percent next year, and spending on health will increase from 7 percent to 7.6 percent in 2012. (macauhub)