Mozambique’s parliament has approved the 2009 Annual Budget of $4 billion with a 55% deficit which the government hopes to cover up with heavy taxing, soft loans and grants.
The approval, at first reading late on Saturday, enjoyed a backing of 147 votes by the ruling Frelimo party against the opposition Renamo’s 71 votes.
According to the government, 2009 taxes and other domestic sources of revenue will raise $1.85 billion.
The government’s 5 percent increase in the 2009 annual budget from the initial $3,8 billion to $4 billion seeks to boosts spending on education, health and infrastructure.
Tackling poverty was the top priority and spending would go mainly on education, health, infrastructure, agriculture, governance and public order, according to the government.
A big chunk of money was earmarked for the recruitment of teachers, heath workers and police.
Mozambique, which has a population of about 20 million, aims to reduce poverty to 40 percent in 2015 from 45 percent now.
Source African Press Agency
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