Government of Mozambique introduces austerity measures

6 December 2017

The government of Mozambique aims to save 7.2 billion meticais (US$117.4 million) in 2018 by reducing spending on the rights and privileges of State leaders, holders of government office and other public officials and agents, the Minister of Economy and Finance said on Tuesday in Maputo.

Minister Adriano Maleiane said that, under the decree-law approved by the Council of Ministers, from 2018 expenditure included in the State Budget for payment of housing, rent allowance, rent of buildings, fuel, communications and other benefits will be reduced.

Maleiane said, for example, that in terms of renting property, given the State’s inability to provide housing to senior staff, the decree set an average value for house rentals in order to save more.

“The reduction of such expenditure will allow savings of up to 1.1 billion meticais (US$18 million), as a result of setting a minimum amount per square metre for rentals,” said the minister, quoted by Mozambican daily newspaper Noticias.

The new decree-law also sets out that state vehicles should have a minimum engine size pf 1300 cubic centimetres (cc) and a maximum of 1500 cc.

This measure will allow savings of 245 million meticais (US$4 million), “a significant value for the public accounts,” said Maleiane. (macauhub)