Mozambique Public Expenditure Review : Addressing the Challenges of Today, Seizing the Opportunities of Tomorrow
Mozambique's economy has experienced strong and sustained growth since the end of the country s civil war in 1992. Over time, the sources of revenues are changing, bringing both opportunities and challenges for fiscal management. The governmen...
| Main Author: | |
|---|---|
| Format: | Public Expenditure Review |
| Language: | English en_US |
| Published: |
Washington, DC
2015
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/09/23069780/mozambique-public-expenditure-review-addressing-challenges-today-seizing-opportunities-tomorrow http://hdl.handle.net/10986/21277 |
| Summary: | Mozambique's economy has
experienced strong and sustained growth since the end of the
country s civil war in 1992. Over time, the sources of
revenues are changing, bringing both opportunities and
challenges for fiscal management. The government has
loosened fiscal policy in the past few years, and the
current fiscal stance does not appear sustainable. Public
spending is projected at almost 42 percent of gross domestic
product (GDP) in 2014, and the deficit after grants is
expected to widen to over 9 percent of GDP. These fiscal
consolidation efforts will require reprioritizing
expenditures and increasing the efficiency of spending, to
ensure sufficient resources are allocated to priority
sectors. Looking ahead, substantial resource revenues
expected toward the end of the decade present an
unprecedented opportunity but this will need to be well
managed. The 2001 and 2003 public expenditure reviews
indicated that a number of financial management reforms are
required, which the government successfully implemented.
However, it is important to build on this progress to ensure
that the government is sufficiently prepared to address the
challenges ahead. Given external economic shocks and the
possibility of weaker commodity prices, resource revenues
can be delayed or reduced. Therefore, it will be important
to adopt a prudent fiscal stance in the medium term to
adequately prepare for the changes ahead. |
|---|