The government expects to soon settle a debt of 1.5 billion meticais (23.2 million dollars) owed to Small and Medium Enterprises (SMEs) and to exempt from penalties those unable to make contributions due to the post-election protests of 2024. The information is contained in the Economic Recovery and Growth Plan (Prece), approved on September 16 by the Council of Ministers.
“We foresee payment of the State’s debt to suppliers of goods and services, estimated at 1.5 billion meticais. We also intend to strengthen budget control mechanisms, account reconciliation, scheduling, and payment prioritization,” the plan states.
The document acknowledges that, despite the legal obligation to transfer deducted contributions to the Social Security system, taxpayers and self-employed workers are not always able to meet their obligations — mainly due to the economic and financial difficulties that have affected the entire productive sector in recent years, as a result of both domestic and international conditions, leaving thousands of workers unemployed.
In May, Finance Minister Carla Louveira announced that the State owes 6.9 billion meticais (107 million dollars) to suppliers and service providers but assured that the debts would be settled, noting that the amount refers to arrears accumulated up to 2023.
“The 6.9 billion meticais are existing debts in the system, accumulated up to 2023. We conducted a survey, which is published within the public debt financing strategy, and additional work is being carried out to determine whether other potential debts exist,” the minister explained.
In the past, the Confederation of Economic Associations of Mozambique (CTA) had already called for the State Budget to include an annual allocation of 50 million dollars to pay overdue invoices, citing the financial strain such delays cause to companies.
The private sector also suggested offsetting the State’s debt to suppliers through tax obligations. “Regarding the delay in the payment of invoices to suppliers of goods and services to the State, the CTA proposes that the government compensate the debt through tax obligations, to ease the pressure on the State treasury,” the statement added.
Source: Diário Económico
