Government revenue in the first half of this year only covered 41 per cent of the amount planned for the entire year, according to figures presented on Tuesday to Mozambique’s Council of Ministers (Cabinet).
Speaking to reporters at the end of the weekly meeting, the government spokesperson, Deputy Health Minister Mouzinho Saide, said that the revenue had come to 72.3 billion meticais (which is about 1.03 billion US dollars at current exchange rates). Meanwhile, the total public expenditure was 95.2 billion meticais.
Saide added that “it is estimated that the rate of growth of GDP will be 4.5 per cent and the rate of inflation will be 10.12 per cent”. He added that a report on the compliance with the government’s Economic and Social Plan (PES) for 2016 will shortly be submitted to the country’s parliament, the Assembly of the Republic.
The rate of growth during the first six months of the year was the equivalent of four per cent, and Saide claimed that “the overall performance indicators for the first half of the year when compared with the PES suggest that the targets will be reached”.
Saide told reporters that the National Disaster Management Institute (INGC) had provided food and support to families who were the victims of strong winds in the southern province of Maputo. He revealed that 270 houses had been destroyed, stressing that this had aggravated the already existing problems of food insecurity in that part of the country. Almost the entire south and centre of Mozambique has been affected by the severe drought brought on by the El Nino phenomenon.
The Cabinet also approved a decree on the organisational and operational norms of the Insurance Supervision Institute of Mozambique (ISSM), which will allow ISSM to issue licences.
The ISSM was set up by a government decree of 2010. It is an autonomous body operating under the tutelage of the Finance Ministry and is tasked with supervising and monitoring the activity of insurance and reinsurance companies and the managers of supplementary pension funds.
In addition, the Cabinet approved the creation of an energy regulator in response to the development of the natural gas market, the growth in the fuel distribution network and the evolution of the energy sector. The creation of the new authority is expected to result in the closure of the National Electricity Council