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Budget for 2001 dependent on foreign aid

    JOHANNESBURG

    The Mozambican state remains dependent on foreign aid for around half of its public expenditure, Finance Minister Luisa Diogo told parliament on Friday. Diogo said that of total public expenditure in 2000 of 17,292 billion meticais (slightly more than US $1 billion), 8,282 billion meticais (47.9 percent) was met by foreign aid. The state’s own revenue (mostly from taxes) only amounted to 7,471 billion meticais (43.2 per cent). Debt servicing, the finance minister said, amounted to only five percent of recurrent expenditure. According to Diogo this was because of the Highly Indebted Poor Country Initiative (HIPC) from the IMF and the World Bank. Diogo said the government has used HIPC debt relief to strengthen the budget for “priority sectors”, notably education and health.

    This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

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