In the current financial year of 2021, a total of 37.4 billion meticais, corresponding to 498.3 million USD, were allocated to the health sector. This amount represents an increase of 5.6%, compared to the revised allocation in 2020, as well as an increase of 59% in relation to health expenditure in 2019.
Source: OCS based on the General State Account (CGE) 2010-2019
With regards to the growth rate of allocated resources, as well as of resources spent in the past six years, the budget earmarked for the health sector has been volatile
Indeed, while the volume of the budget allocated to the sector grew by an average of 11% in the period from 2010 to 2020, there was however an annual growth peak of 34% in 2020 and a reduction of 11% in the year 2017.
The average increase in the annual budget execution was similarly 11%, with the highest variation occurring in 2020 (39%), and the lowest in 2019 (negative 2%).
The lack of consistency in budget allocation trends, over time, shows the absence of consistent policies for financing the sector, by the executive.
This situation calls into question the consolidation of the gains that have been achieved over the years, as well as putting at risk the materialisation of internationally assumed commitments – the Abuja Declaration, which establishes the need to allocate 15% of the State Budget to the health sector.
The amount allocated to the sector in 2021 represents around 10.1% of total of the State Budget (including General State Charges – EGE), reaching 14% when the EGE are excluded. Based on history, these ratios present a stable behaviour between 2014-2019, with a significant growth of around 5%, in 2020 and 2021, compared to the average of the past five years. However, the average of the resources allocated to the sector as a proportion of the global State Budget hovers between 9% and 10%, when the EGE are excluded.
For its part, the 10% parcel is similar to the average participation of the health sector in low income countries, but is lower to the average participation of the health sector in sub-Sharan Africa.
With respect to the proportion of resources allocated to the sector in relation to the Growth Domestic Product (GDP), Mozambique improved its situation in 2020 by 0.6 percentage points (reaching 3%) in 2021.
This ratio is similar to the country’s average in the last decade (3%), with minimum variation. Equally, the ratio indicates a performance lower to the average of sub-Saharan Africa countries (1%).
Source: OCS based on the General State Account (CGE) 2010-2019
This analysis shows the lack of consistency in budget allocations with regards to the health sector and, that being the case, it presupposes the need for government to find ways which enable the surpassing of the hurdles, in order to render investments in health more efficacious and efficient. By way of example, government could show a greater precision and consistency in investments to the sector. A greater consistency could generate crucial benefits to the health sector – which would allow for a greater predictability in the package of resources for the sector.