Public investment in Mozambique to fall by 5.7 pct in 2012

12 October 2011

Maputo, Mozambique, 12 Oct – The value of public investment included in the proposed Economic and Social Plan (PES) for 2012 presented by the Mozambican government represents a drop of 5.7 percent as compared to 2011, according to Mozambican newspaper O País.

The newspaper said that as a percentage of total budget expenditure, the amount earmarked for investment dropped from 45.7 percent in 2011 to 40 percent in 2012, although in real terms the figure rose from 64.752 billion meticals in 2011 to 65.018 billion in 2012.

For 2011 state investment will be focused on education, health and public works, including construction of roads and bridges as well as economical homes.

Some 18,800 houses are planned to be built across the country as well as the general hospitals of Nampula, Quelimane and Beira, and construction of 1,400 equipped classrooms.

The newspaper added that foreign aid had been falling from 24.9 percent of the budget this year to 21.4 percent in 2012 and in real terms from 35.285 billion meticals to 34.719 million meticals.

This drop will be made up for by loans leading to an increase of 5 billion meticals in state debt to 29.630 billion meticals. (macauhub)