Mozambique expects budget deficit of 11.1 pct of GDP in 2015

27 April 2015

The budget deficit of Mozambique in 2015 is expected to reach 65.7 billion meticais, equivalent to 11.1 percent of gross domestic product (GDP), an increase of 0.5 percentage points compared to 2014, according to the Economic and Social Plan (PES) and the 2015 Budget.

Under discussion in the Mozambican parliament since Friday the two documents indicate that this deficit will be covered by donations granted by international cooperation partners and internal and external credits.

The external grants will fall from 21 billion meticais in 2014 to 20 billion in 2015, showing a decrease of 6.8 percent, while external credits will record an increase of 3 percent.

The State’s total resources are set at 226.4251 billion meticais, of which 160.7 billion are own revenues, 9.1 billion correspond to domestic credit and 56.5347 billion are from external sources.

However, the financing of capital expenditure is estimated at around 83.1 billion meticais, equivalent to 14 percent of GDP, down 0.4 percentage points compared to 2014.

The allocation of resources for investment is focused on the implementation of measures outlined in the PES and the Integrated Investment Programme, with greater application in sectors with high potential for promoting growth and economic development to ensure interaction and complementarity between the different levels of investment. (macauhub/MZ)