
Maputo, 10 Sep (AIM) – The Fiscal Risks Report, undertaken by the Ministry of Economy and Finance, reveals that the 18 Mozambican municipalities that took out multi-annual loans were unable to meet their repayment plans between 2019 and 2022.
According to the report, cited in Tuesday’s issue of the independent daily “O País”, the debt of these municipalities, in the period under review, especially with suppliers, increased by 10 per cent.
The report points out that failure to pay these debts as planned endangers the financial sustainability of the municipalities, to the tune of almost 1.3 billion meticais (20.4 million dollars at the current exchange rate).
“In the period under review, total debt increased by 10 per cent, influenced by the 159.8 per cent increase in debt to suppliers. However, commercial debt, with an average weight of 62.5 per cent, is also a concern”, reads the document.
The report also says that despite the 53 per cent growth in municipalities’ own revenues, they still depend on the government for 44 per cent of their revenue.
“These results were strongly influenced by the Maputo Municipality’s own revenue which, over the period analyzed, on average represents 40% of the own revenue of the 18 municipalities analyzed”, it says.
The document also notes that the risks associated with municipalities can have an impact on fiscal sustainability and economic stability, “which is expressed in high expenditure, and poor revenue collection and can lead to deficits and excessive indebtedness.”
(AIM)
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