IMF Takes a Passionate Look at TSU

FMI lança um olhar apaixonado à TSU

The International Monetary Fund (IMF) adopts a hopeful and positivist stance on the benefits that will accrue to Mozambique and its civil service with the implementation of the Single Treasury Tariff (TSU).

For the IMF, the TSU will facilitate the mobility of civil servants within the state while giving the government more control over the payroll.

On the other hand, the alignment and control of salaries in the public sector will allow the government to be in a better position to prioritize spending more effectively and better control the fiscal deficit, in the medium and long term. But also, the fund predicts that in the short term there will be a growth in the wage bill.

The proportion of civil service salaries in relation to GDP will increase in the short term, but that in two or three years should decrease, said an IMF official in Maputo, quoted by the weekly newspaper "Savana".

The same source revealed that Mozambique currently has one of the highest wage bill to GDP ratios in Sub-Saharan Africa.

Regarding the impact of the TSU on the economy at a time of inflationary pressures, the IMF advanced that the programmed Government supported by this institution incorporates the costs of these measures in the short term, and adequate funding is provided for in the program's overall financing package.

The TSU responds to the recommendations inherent to salary slimming, underlining that the Government's plans find a balance between being fair to public employees and an ambitious but inevitable reform that, in the long run, will allow better control of public spending.

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