Child Poverty in Mozambique. A Situation and Trend ... - Unicef
Child Poverty in Mozambique. A Situation and Trend ... - Unicef
Child Poverty in Mozambique. A Situation and Trend ... - Unicef
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Table 3.4: M<strong>in</strong>istry of Health budget allocations, 2001 – 2005<br />
2001 2002 2003 2004 2005<br />
Total M<strong>in</strong>istry of Health Budget (US$ million) 165 178 209 253 344<br />
Growth Rate (% change on previous year) n/a 7.6 17.8 20.9 36.0<br />
Inflation (%, annual average) 9.1 16.8 13.5 12.6 6.4<br />
Expressed as a % of GDP<br />
Total M<strong>in</strong>istry of Health Budget 4.5 4.3 4.4 4.3 5.2<br />
M<strong>in</strong>istry of Health fund<strong>in</strong>g <strong>in</strong> the State Budget* 1.9 1.9 1.8 1.6 2.6<br />
Expressed as a % of total State Budget<br />
Total M<strong>in</strong>istry of Health Budget 23.6 14.7 17.8 19.2 21.3<br />
M<strong>in</strong>istry of Health fund<strong>in</strong>g <strong>in</strong> the State Budget 10.0 6.3 7.5 7.3 10.6<br />
Expressed as a % of total Health budget<br />
State Budget 42.4 43.2 42.3 37.9 49.5<br />
Recurrent Expenditure 37.7 39.1 38.1 34.5 32.0<br />
Common Funds 10.0 11.5 17.7 25.0 44.2<br />
Note: *State Budget fund<strong>in</strong>g comprises recurrent <strong>and</strong> <strong>in</strong>vestment expenditures captured <strong>in</strong> the OE.<br />
Sources: Adapted from M<strong>in</strong>istry of Health (2005, p. 53), M<strong>in</strong>istry of Health (2006) & MPD/MF data (<strong>in</strong>flation & GDP).<br />
As discussed <strong>in</strong> Chapter II, not all donor f<strong>in</strong>anc<strong>in</strong>g <strong>and</strong> <strong>in</strong>ternal revenues <strong>in</strong> the sector<br />
are captured <strong>in</strong> the State Budget – there are many “off-budget” funds. Cabral et<br />
al. (2005) have estimated that <strong>in</strong> 2003, 29 per cent of total sector fund<strong>in</strong>g was not<br />
recorded <strong>in</strong> the State Budget, 60 per cent was not registered <strong>in</strong> the Treasury <strong>and</strong><br />
44 per cent was not accounted for <strong>in</strong> the public accounts. This hampers sectoral<br />
plann<strong>in</strong>g <strong>and</strong> has prompted efforts by the sector <strong>and</strong> the M<strong>in</strong>istry of Plann<strong>in</strong>g <strong>and</strong><br />
Development / the M<strong>in</strong>istry of F<strong>in</strong>ance to improve the coverage of external assistance<br />
<strong>in</strong> Government Public F<strong>in</strong>ance Management systems. This <strong>in</strong>itiative may expla<strong>in</strong> part<br />
– though by no means all – of the recent recorded rise <strong>in</strong> external assistance to the<br />
sector. Another contribut<strong>in</strong>g factor has been the channell<strong>in</strong>g of <strong>in</strong>creas<strong>in</strong>g proportions<br />
of vertical funds through Common Funds rather than projects, mak<strong>in</strong>g these funds<br />
easier to capture too.<br />
As a result of the measurement issues surround<strong>in</strong>g off-budget <strong>and</strong> vertical funds,<br />
measur<strong>in</strong>g the balance between external assistance <strong>and</strong> government revenue <strong>in</strong><br />
f<strong>in</strong>anc<strong>in</strong>g the sector’s budget is not straightforward (see Box 3.9). However, it is<br />
undoubtedly the case that the share of external f<strong>in</strong>anc<strong>in</strong>g <strong>in</strong> the health sector budget<br />
is <strong>in</strong>creas<strong>in</strong>g: growth <strong>in</strong> <strong>in</strong>ternal f<strong>in</strong>anc<strong>in</strong>g over the period 2002 – 2005 averaged 15<br />
per cent per annum, while external f<strong>in</strong>anc<strong>in</strong>g <strong>in</strong>creased by 25 per cent on average,<br />
with particularly marked <strong>in</strong>creases <strong>in</strong> levels of budgeted external assistance<br />
channelled through the three sector Common Funds (total Common Fund budgets<br />
rose from US$17 million to US$152 million). 43 As a result the proportion of external<br />
f<strong>in</strong>anc<strong>in</strong>g <strong>in</strong> the total sector budget has <strong>in</strong>creased from around 55 per cent to 63 per<br />
cent (see Figure 3.29).<br />
122 CHILDHOOD POVERTY IN MOZAMBIQUE: A SITUATION AND TRENDS ANALYSIS