The Bank of Mozambique says that government spending has been very high in recent months, mainly due to the implementation of the Single Wage Table (TSU).
However, until the end of the year, the bank expects pressure on public spending to remain high due to the 6th Municipal Elections and beyond, Mozambican newspaper Carta reported, citing a report from the Bank of Mozambique on the Economic Environment and Inflation Prospects.
In the document consulted by the newspaper, the institution shows that in recent months, particularly in the first quarter, there has been an increase in public spending, particularly operating expenditure.
“The execution of the State Budget in the first quarter of 2023 shows that, in year-on-year terms, the increase in current spending, partly associated with the implementation of the Single Wage Scale (TSU), was decisive for the increase in total State expenditure, in a context in which public investment fell,” the report said.
Data in the document shows that in the first quarter of 2023, total expenditure grew 22 percent, to 105.8 billion Meticais against 86.5 billion Meticais registered for the same period of 2022.
Within total expenditure, current expenditure (salaries, wages, etc.) grew 16% to 77.5 billion Meticais against 66.6 billion Meticais spent in the first quarter of 2022.
Based on these figures, it appears that the government spent an average of 25.8 billion Meticais per month, as compared to 22.2 billion Meticais in the same period of the previous year, the Letter wrote. However, if on the one hand the operating expenses of the State machine grew, investment expenses fell dramatically.
The Central Bank Report shows that in the first quarter of 2023, the Government invested 4.9 billion Meticais, a figure that represents a fall of 28% compared with the same period of 2022, which was 6.9 billion Meticais.
Meanwhile, overall, public spending is very high and the Central Bank expects that until the end of 2023 it will continue to grow because of the municipal elections scheduled for next October.
“Until the close of the year, pressure on current expenditure is expected to remain high due to increased needs related to the impacts of climate shocks and electoral processes,” the report on the Economic Environment and Inflation Outlook of the Bank of Mozambique states.
Information advanced at the end of March 2022 by the National Elections Commission (CNE) indicates that the 6th Local Elections, to be held on 11 October 2023, and the 7th General Elections, to be held in 2024, will cost 18.7 billion Meticals.
Carta de Moçambique
