Social Action Budget Brief - Mozambique 2021

Highlights The 2021 budget for social protection is worth MZN 10.1 billion. This represents a 50 percent nominal increase relative to the 2020 initial allocation (i.e. the first allocation approved by Parliament in 2020) before the onset of the COVID-19 pandemic. However, it represents a 2 percent nominal decrease relative to revised allocation (i.e. the allocation that was revised by Parliament in November 2020 in response to COVID-19), a 4 percent nominal decrease relative to updated allocation (i.e. funds that arrive at the disposal of social protection institutions), and a 26 percent nominal increase relative to the actual expenditure in 2020 (i.e. funds that were spent at the end of budget year) (see Glossary of budget terminology). It is important to highlight that 2020 revised allocation to the sector was exceptionally high as a result of financial support provided by international finance institutions and development partners to implement the sector’s response plan to COVID-19. While part of these funds appeared in the 2020 budget revision, they are de facto being executed in 2021 (i.e. when the actual transfers to beneficiaries of the Direct Social Support Programme - Post Emergency (PASD-PE) are taking place).