Mozambique: Fiscal Transparency Evaluation

IMF Staff Country Reports, February 5, 2015

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Mozambique: Fiscal Transparency Evaluation

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Bibliographic details

• Published: February 5, 2015
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781484316993.002

Overview

• The report highlights that Mozambique’s program of budget reforms has brought most aspects of its fiscal reporting and budgeting practices into line with basic and good practices, as defined under the IMF’s Fiscal Transparency Code.
• Weaknesses on fiscal reporting could be addressed on the short term by the on-going reforms.
• Disclosure and management of fiscal risks are inadequate and should be improved on the medium term to face the challenges that may arise from the expected increase in natural resource revenues.
• The report makes seven recommendations aimed at materially enhancing the information base for fiscal decision-making in Mozambique and ensuring the country keeps pace with evolving international transparency standards and practice.

Key findings

• Most fiscal reporting and budgeting practices now conform to basic and good practices under the IMF’s Fiscal Transparency Code.
• Fiscal risks disclosure and management are inadequate and need medium-term improvement to address risks from expected increases in natural resource revenues.
• Institutional coverage of fiscal reports is still limited; it does not provide complete and reliable information on operations performed by:
  • the social security fund
  • numerous autonomous entities
• Government fiscal reporting is prepared on a modified cash basis.
• Important elements of the balance sheet are not reported, including:
  • the current value of arrears
  • shares of corporations owned by the State

Fiscal reporting and accounting issues

• Reporting basis: modified cash basis.
• Missing balance-sheet elements: current value of arrears; shares of corporations owned by the State.
• Institutional coverage: incomplete for social security fund and numerous autonomous entities, which are likely to be significant.

Policy implications and priorities

• Short-term: continue on-going budget reforms to address remaining weaknesses in fiscal reporting.
• Medium-term: improve disclosure and management of fiscal risks to handle challenges from expected increases in natural resource revenues.
• Broader: enhance information base for fiscal decision-making so Mozambique keeps pace with evolving international transparency standards and practice.

Recommendations (as summarized)

• The report presents seven recommendations aimed at:
  • materially enhancing the information base for fiscal decision-making in Mozambique
  • ensuring alignment with evolving international transparency standards and practice

Content in this bundle

• Republic of Mozambique: Fiscal Transparency Evaluation; IMF Country Report No. 15/32, December 2014
  • Republic of Mozambique: Fiscal Transparency Evaluation; IMF Country Report No. 15/32, December 2014 (Markdown version)
  • Republic of Mozambique: Fiscal Transparency Evaluation; IMF Country Report No. 15/32, December 2014 (PDF)
• Country Bundles Report template
  • Country Bundles Report template (Markdown version)
  • Country Bundles Report template (PDF)