Mozambique budget outlines 11% deficit in 2017

9 December 2016

Mozambique’s parliament on Thursday approved, in general, the state budget for 2017 which includes a deficit of 11% of gross domestic product (GDP) and stipulates costs of 272.3 billion meticais (US$3.729 billion), the Mozambican press reported.

The Minister of Economy and Finance, Adriano Maleiane said in Parliament that the deficit will be covered by issuing debt in the domestic market and borrowing from foreign markets, according to Mozambican news agency AIM.

Mozambique awaits conclusion of the international, independent audit of the way public companies took on loans of over US$2 billion and the fate of this money so that the International Monetary Fund (IMF) will consider approving a new aid programme.

Addressing parliament, the minister estimated revenues for 2017 in the amount of US$2.5 billion.

Maleiane said that of planned expenditure 23% will be earmarked for education, while the construction of infrastructure will account for 18% of the total.

Expected economic growth outlined in the macroeconomic scenario of the state budget is 5.5%, which compares with a rate of 3.9% expected for 2016, said Prime Minister Carlos Agostinho do Rosario, addressing members of parliament.

Rosario stressed that the advances seen in the extractive industries will in the short and medium term, stabilise the economy and restore economic growth and expand and diversify the production base to improve the living conditions of every Mozambican. (macauhub)