IMF urges govt to spend more on provinces

The International Monetary Fund (IMF) this week said although Mozambique had generally achieved success in reducing poverty, progress was uneven across the country. In its latest assessment of the government's performance, the Fund urged authorities to decentralise responsibilities and fulfil earlier promises of allowing greater budgetary autonomy for municipalities. "In the case of municipios (municipalities), the government must clearly continue channelling resources into the education and health sectors. New projects are also needed, especially with a view to improving basic sanitation conditions, portable water supply, environmental conservation and road maintenance," the report said. The Fund warned that scarce financial and human resources at the municipal level were leading to "rapid deterioration" of social services and basic infrastructure. It also recommended that the central government "co-finance" municipal budgets, underlining the inability of municipalities to generate local resources. "By centralising finances, the government continues to manage political power effectively. It would be worthwhile to share responsibilities, as this would mean that more people would have control of their daily lives and perhaps benefit from the country's wealth," a regional analyst told IRIN. The IMF report was issued ahead of local elections in 33 towns and cities across the country, set for October. "While there has been a slight increase in access to basic services, the majority of people living outside of Maputo [the capital] have not reaped the benefits of the economic recovery. Considering the government will be faced with an opposition in the elections, it should give some thought to the feelings of people who feel left out," the analyst said. The IMF report noted that the 2003 budget increased the proportion of funds channelled to provinces, and government was planning to implement measures to strengthen administrative-financial capacity at the local level.