Mozambique’s 2012 budget sets aside 1.2 pct of GDP for subsidies

9 January 2012

Maputo, Mozambique, 9 Jan – Mozambique’s 2012 General State Budget has set a ceiling of 5.240 billion meticals, or 1.2 percent of gross domestic product (GDP) for subsidies.

Of that amount, 739 million meticals will be used to make up for deficits of state companies, particularly power company Electricidade de Moçambique, airport company Aeroportos de Moçambique, port and rail company Empresa de Portos e Caminhos de Ferro de Moçambique, oil company Petróleos de Moçambique, airline Linhas Aéreas de Moçambique and telecoms company Telecomunicações de Moçambique.

The State Budget also includes in that figure price subsidies in the amount of 4.448 billion meticals to keep the package introduced in 2010 to provide the population with access to essential goods and services.

The government announced a number of subsidies for essential goods and for transport in 2010, not long after violent protests broke out on 1 and 2 September of that year.

In the 2011 State Budget subsidies fell by 0.3 percentage points of GDP. (macauhub)