Public finance in Mozambique: past, present and future

Abstract

In Mozambique, public finances continue to face significant challenges that directly impact the country's economic and social development. Among these challenges, the urgent need for improvements in critical areas stands out, such as transparency of public accounts, management of public debt and the fight against corruption. The lack of transparency in Mozambican public accounts has been a recurring concern, with reports of a lack of adequate accountability by the government and difficulty in accessing detailed financial information. This scenario makes it difficult to effectively assess the use of public resources and undermines citizens’ trust in government institutions. Furthermore, Mozambique faced significant challenges related to public debt management, including undisclosed and unsustainable borrowing. This situation led to a debt crisis that required intervention by the International Monetary Fund (IMF) and other international partners, highlighting the need for more responsible and transparent management of the country's financial resources. Another challenge is the persistence of corruption, which undermines efforts to promote socioeconomic development and undermines the effectiveness of public policies. But it also undermines citizens’ trust in democratic institutions and the rule of law.