Spending on civil service salaries is expected to grow by 9.1% in 2023, to 181.8 billion meticais, according to official figures, in a year marked by the application of the Single Wage Rate (TSU).

According to data from the government and the International Monetary Fund (IMF) contained in a report this month by the Fund, compiled today by Lusa and with a revision of previous estimates, spending on salaries, including social security, thus represents more than half of the 320.4 billion meticais in current state costs estimated for 2023.

The same report points out that in 2022, also after the IMF review, out of 298.4 billion meticais in current state costs, 166.6 billion meticais were earmarked for the payment of civil service salaries and social security.

For 2024, and despite the changes underway, the report estimates, also after a downward revision, an increase in current state spending to 363.9 billion meticais, of which 203.7 billion meticais for salaries and social security.

In 2019, Mozambique's total spending on the Civil Service was 117.3 billion meticais.

On July 14, the IMF considered that the government should "reduce the wage bill" at the level of the countries in the region, in order to be able to invest in priority areas, such as combating food insecurity and poverty.

"On the expenditure side, reducing the wage bill in line with regional peers will help create fiscal space for priority spending. Further strengthening the social safety net remains important to address food insecurity and high poverty," says the Fund's Deputy Executive Director, Bo Li, quoted in the communiqué on the final approval of the review of the Extended Credit Facility (ECF) for Mozambique.

The IMF announced the approval of this revision to the ECF on July 6, guaranteeing a disbursement of 60.6 million dollars to Mozambique, which was confirmed a few days later in a statement issued by the institution.

A problem with the computer system and the framework for state employees in Mozambique, as part of the implementation of the TSU, is causing delays in the payment of salaries to the Civil Service, the government admitted, denying financial difficulties.

"I don't want to say precisely that the delay in paying salaries will be resolved tomorrow or the next day. What I can assure you is that in the near future the situation should return to the normality that has always characterized the Civil Service, namely the timely payment of salaries," the spokesman for the Council of Ministers, Filimão Suaze, told reporters.

At issue are delays in payments, especially for teachers, who still haven't received their salaries for June.

The state expects to reduce the civil service wage bill by 500 million meticais with the corrections to be made after ongoing audits.

"Around 500 million meticais: this will be the reduction resulting from the impact of the audits, due to the corrections that will be made," said the Inspector General of Finance, Emanuel Mabumo, at a press conference in Maputo in June.

The audits should be completed by the end of July, he said, and are part of the measures announced at the beginning of the year by the government to contain the growth of the wage bill with the implementation of the TSU.

The investigations into the accounts cover 374,000 state employees from all walks of life.

At the time, almost half of the cases had already been analyzed and non-conformities were detected in 20%, said the Inspector General.

He predicts that "this average will be maintained" until the end of the audits, which gives an estimate of a monthly correction of 500 million meticais.

The TSU was approved in 2022 in order to eliminate asymmetries and keep the state wage bill under control in the medium term, but the start-up has caused salaries to skyrocket by around 36%, from 11.6 billion meticais/month to 15.8 billion meticais/month.

The corrections will shrink this figure, as will the reduction in top salaries approved in May.

The Minister of Economy and Finance, Max Tonela, explained at the time that the priority is to rationalize public spending in order to "increase the envelope of resources to finance vital sectors and boost the economy". (SAPO)