Nyusi’s government spent more than it produced in the first half of 2022. Last Tuesday (02), the Government took stock of the Economic and Social Plan and State Budget for the first half of 2022. Meeting at the 26th ordinary session of the Council of Ministers, the Executive led by Filipe Nyusi found that, in the period under analysis, it spent more than it collected on State revenue. According to a statement from the Secretariat of the Council of Ministers, the execution of the State Budget reveals that, in the period under analysis, the expenditure incurred stood at 174 billion Meticais, corresponding to a realization of 38.7 percent of the entire budget for 2022, against 165.8 billion Meticais realized in the same period of 2021.   The document shows that this expense was not offset by the revenues collected by the Government in the first quarter of 2022, as is usual. State revenue collection was 133.8 billion Meticais, corresponding to 45.6 percent of the annual target, against 127.4 billion Meticais in 2021.   There is a difference of just over 40 billion Meticais between expenditure and revenue. This difference is called a deficit. To close this gap in the accounts, the Government resorts to donations from cooperation partners, but mainly to external bank loans and, especially, internal ones, since in international markets, the country is not more accepted due to the high levels of public debt. This fact (domestic indebtedness) is based on data contained in the report on the Economic Conjuncture and Inflation Prospects recently released by the Central Bank, which report that the State’s internal debt increased, in accumulated terms, until June, by 29.3 billion Meticais, to 248.2 billions of Meticais. Despite the adverse factors, the Government states, in a statement, that there was internal macroeconomic stability during the first half of 2022.   The statement from the Secretariat of the Council of Ministers also contains the balance of the Economic and Social Plan. The note states that the Government had programmed 358 indicators for the first semester, of which 50 percent (179) reached the target, 22 percent (78) partially reached and 28 percent (101) did not reach the goal. (Evaristo Chilingue) Source: Letter from Mozambique

Aug 5, 2022

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