Deepening Integration in SADC - Fes-botswana.org

Table 14 presents GDP growth rates in general and of some key
sectors such as agriculture, fisheries, health, education, transport and
communications, the transforming and extractive, and others. Despite
a slight slow down in the last two years, the real GDP growth on the
economy is expected at an average of 7% up to 2008 if mega projects
are included, and at about 6.5 if these are excluded.
These two approaches allow a more detailed analysis of the economy
behaviour given the fact that large-scale undertakings have high growth
rates at short term.
6.5 Fiscal Trends
Revenues: The fiscal revenue remained relatively stable in the last six
years throughout the period, the percentage of fiscal revenue of
GDP was approximately 12% and the percentage of total revenue of
total expenditure declined but went up again. Fiscal revenues have
experienced a considerable increase in Mozambique as a result of the
introduced fiscal reforms, modernisation of the fiscal administration,
reduction of tax evasion, rationalisation of the concession of fiscal
benefits. Currently, the fiscal revenue stands at 14.9% of GDP (2004).
A gradual increase towards the 16-17% target in 2009 is expected
(Table 15).
Table able 15: 15: Mozambique Mozambique Gover Government Gover nment Revenue Revenue in in % % (1999-2004)
(1999-2004)
2000 2000 2001 2001 2001 2002 2002 2003 2003 2003 2004 2004
2004
Total revenues 29.9 31.7 31.0 26.5 24.8
Internal revenues 14.0 14.0 14.2 12.1 11.9
Current revenues 12.9 11.9 11.7 12.8 12.4
Capital revenues 0.2 0.4 0.0 0.0 0.2
External revenues 15.9 17.7 16.7 14.5 12.9
Donations 11.8 14.2 10.0 9.5 7.8
Grants
Source: INE, 2005
4.0 3.5 6.7 5.0 5.1
The tax system suffers from various weaknesses that are not only
due to administrative difficulties but also to the tax framework itself.
The challenge is to design a system capable of increasing state resources,
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