Mozambique’s economy is expected to grow this year by just 4.5 percent, against an initial forecast of 7.0 percent, according to the proposal to amend the state budget, approved Thursday at an extraordinary cabinet meeting.
The Minister of Economy and Finance, Adriano Maleiane, said after the meeting that the proposal will be submitted to Parliament no later than Monday, in order to be approved in the current legislative session.
Adriano Maleiane, quoted by Mozambican news agency AIM also said that the current budget includes expenses amounting to 246 billion meticais (US$3.82 billion), and the amending budget reduces that figure to 243 billion meticais, following cuts in investments, buying goods and services and travel.
The Amending Budget includes a deficit of 11.3 percent of GDP against 10.2 percent in the original budget due to the drop in the collection of revenues from 25.9 percent to 24.1 percent of GDP, which fell from 176 billion meticais (US$2.73 billion) to 165 billion meticais (US$2.56 billion).
The minister said that the review of the budget law is dictated by the need to adjust the macroeconomic assumptions to recent developments in the global and national economy, especially the fall in commodity prices, reduced foreign direct investment and the flow of direct budget support. (macauhub/MZ)