External funding for Mozambique’s state budget falls back

4 April 2014

External funding of Mozambique’s State Budget through donations or loans was less than 30 percent in 2012, according to the General State Accounts for the 2012 financial year, which was discussed Wednesday and Thursday in Mozambique’s parliament.

The General State Accounts are closed in May of the following year to which they refer and they are then sent to the Administrative Court, which issues a report on the legality of the public expenditure carried out, and the two documents are then sent on to the National Assembly for discussion and approval.

Foreign aid at one time covered around 50 percent of Mozambique’s State Budget but more recently that percentage has been falling as some countries have not delivered on the funding they pledged.

The 2012 State Budget included donations and loans in the amount of 64.35 billion meticals (US$2.1 billion) but the Treasury received just 42.96 billion meticals, or 66.8 percent of what was pledged.

Part of the deficit was made up from a rise in taxes and from other domestic sources as there was a 3 percent rise in internal revenues to 103.63 billion meticals.

In a summary of the finance resources of the 2012 State Budget, the government document showed that 69.1 percent was made up of domestic revenues, 2.2 percent of internal loans, 18.9 percent of foreign donations and 10.8 percent external loans. (macauhub)