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Budget Monitoring Fund Wants Wider Registration of Social Action Beneficiaries

Budget Monitoring Fund Wants Wider Registration of Social Action Beneficiaries

The Budget Monitoring Fund, a Mozambican non-governmental organisation (NGO), defends a reinforcement of the registration of beneficiaries of state social action, arguing that there are too many people outside the system.

It is necessary to “strengthen investment in the process of identification and registration of individuals and households eligible for the various basic social security programmes implemented by the National Institute for Social Action (INAS),” reads the recommendations of the Budget Monitoring Fund (FMO) to the budget execution in the first half of the year. The recommendations are part of a document analysing the figures published by the Government, consulted by Lusa.

The social protection sector stands out for presenting high execution figures, but the FMO warns that this does not correspond to a great improvement in coverage. According to the organisation, “these are indications of a deficient planning process at the level of the Ministry of Gender, Children and Social Action and INAS”. “Fundamentally, there is an undervaluation of potential social protection beneficiaries at the level of the planning process, which ultimately results in high execution rates,” it detailed.

In a broader view of the execution of the 2022 plan and budget until June, the economic recovery after covid-19 was the only favourable factor for budget execution, with the economy growing 4.37% in the first half of the year, leaving it in a good position to surpass the annual target of 2.9% set by the Government.

On the financing side, in the first half of the year 58.7% of the internal loans planned for 2022 had already been spent, while external donations were only 6% – together these two tranches represent about a fifth of the Mozambican State’s financing.

On the execution side (execution of expenditure), there was “greater channelling of resources to financial operations and operating costs,” which led to “marginalisation of investment expenditure, with an execution level of just 14.7%. According to the NGO, this is a worsening of a common practice, leading to the postponement of infrastructure projects and equipment – including health and education.

Policies for macroeconomic stability

The picture leads the FMO to recommend “redoubling efforts in the execution of expenditure aimed at promoting productive investment and fiscal consolidation, with emphasis on containing operating costs”. It also recommends accelerating the implementation of reforms in the area of decentralisation and expenditure planning.

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Given the current scenario, the organisation also suggests that the government continues to “implement policies aimed at promoting macroeconomic stability, with a focus on containing current inflationary pressures and supporting the process of economic recovery.

Inflation in Mozambique in August was 12.1 percent, the highest in the last four years and 11 months, according to the National Statistics Institute (INE). You have to go back to August 2017 to find a higher figure: at the time inflation was 14.13 percent, in the wake of the shock caused by hidden debts.

The rise since the beginning of the year is in line with the global inflationary climate caused by the war in Ukraine and rising fuel prices. In cumulative terms, since the beginning of the year, 2022 inflation in Mozambique now stands at 7.62%.

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