External State Budget funding to Mozambique drops to less than 30 pct

18 March 2013

Mozambique’s dependence on external financing of its state budget fell to less than 30 percent in 2012 the chairman of the Tributary Authority (AT) said cited by the Mozambican press.

At a seminar on tax policy execution, Friday in the city of Matola on the outskirts of Maputo, the chairman of the AT Rosário Fernandes said that external dependence had dropped by over 10 percentage points in just a few years due to good tax collection performance.

Since it was set up in 2006 the Tributary Authority has reported successive tax collection records and in the first two months of this year collection exceeded targets, which indicates stable performance for the remaining months of the year.

The AT took in revenues of 95.8 billion meticals (US$3.2 billion) in 2012, exceeding its tax target for the year by 350 million meticals, said Fernandes.

In 2011 the AT collected 79.2 billion meticals (US$2.98 billion), which meant that against the previous year revenues rose by 16.3 billion meticals (around US$551 million) in real terms. (macauhub)