Failures in donors’ payments reduce foreign aid to Mozambique in 2012

22 February 2013

Foreign aid accounted for just 27 percent of budget execution in 2012 in Mozambique, despite initial projections in the state budget of 41.4 percent, due to successive payment failures by donors, said Finance Minister Manuel Chang.

The 2012 State Budget outlined overall expenditure of 163 billion meticals, of which 58.6 percent were domestically funded and the remainder by foreign aid.

According to Mozambican newspaper O País, the minister, who was speaking about public spending at a meeting in the Matola municipal area, said that the Mozambican government had to be incredibly flexible in order to comply with the budget over the last few years because of successive failures by donors to pay out what they have pledged.

In their turn, revenues have been growing above forecasts and in 2012 rose by 21.7 percent against the previous year, when the Tributary Authority took in taxes totalling 95.9 billion meticals.

Due to the low level of involvement of the foreign aid component of the budget, total expenditure in 2012 was 137.9 billion meticals, which accounted for a 15.3 percent reduction in the expenses included in the State Budget. (macauhub)