Leading up to the FY2016/17 national budget speech in June last year, there was a sense among analysts that the Tanzanian Treasury would be presenting an austerity-focused national budget in a bid to restrain the gradual rise in levels of government debt over the past few years. But instead, the Treasury announced a significant public spending increase of 30% year-on-year.
In December 2016, the Mozambican Finance Ministry announced it would be spending a third more than initially budgeted for FY2017, with a total national budget allocation of USD 3.5 billion, due to a decline in supply of domestic and foreign loans. In fact, according to the IMF, the country had budgeted for a deficit of 11% to GDP, at a time when it still enjoyed financial support from the institution – prior to the announcement of the government’s undisclosed debt.
In the second half of FY2016 and after having been hard hit by lower global oil prices, Angola announced its FY2017 national budget of an estimated USD 44.22 billion. The allocated budget for FY2017 represents a deficit of around 5% to GDP and is projected to increasing, albeit gradually in the short term.