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Home Public finances Fiscal decentralization without a framework in the current context of public finances

Fiscal decentralization without a framework in the current context of public finances

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Descentralização fiscal sem enquadramento no contexto actual das finanças públicas

The current context of public finances does not favor an active decentralization of resources, which will certainly be the next step to be taken after the recent approval of the decentralized governance package by the Assembly of the Republic.

The reasons behind this are related to the fact that the system of transfers to municipalities through the municipal compensation fund is not very transparent, not predictable and stimulates even more social inequalities between the different municipalities, moreover, only this year it is that the Integrated Municipal Financial Management System is in a pilot phase (in the province's municipalities and in the city of Maputo).

This aspect, associated with the fact that inspection mechanisms are almost scarce, since the Administrative Court, on average, audits one municipality per year, shows the level of weakness in which local public finances are found.

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