The Mozambican government is to ask the country’s parliament to approve an amended budget to accommodate repairs of the damage caused by flooding to infrastructure, the Finance Minister said.
Minister Manuel Chang gave no details of the changes made to the budget, but a government estimate noted that of the US$517 million’s damage caused by the flooding, US$353 million was damage to public infrastructure.
“The budget amendment that we plan to submit to parliament is intended to accommodate the expenses needed to repair damaged infrastructure such as dams, roads and railways, some of which are now operating on an emergency basis,” the minister said, cited by Mozambican daily Notícias.
Manuel Chang also noted that the government had some funds to cover part of the budget deficit resulting from the emergency, as well as having requested financial assistance from the World Bank to make up the remainder.
As a result of flooding in January and February, mainly in the South of the country, the Bank of Mozambique announced a review of macroeconomic projections for this year, with gross domestic product (GDP) growth falling from 8 percent to 7 percent.
The review is based on some exports having come to a halt, particularly coal exports, as a result of flood damage to railway lines. (macauhub)