With the late approval of State Budget 2015, there is great interest in monitoring the implementation of State Budget 2016, both for funds channeled via CUT and for external and extra-CUT funds. This Note, the fourth and last Part, is intended to cover the Challenges for Executing the 2016 State Budget and propose recommendations to avoid the repetition of bad practices during the implementation of the 2016 SO. Part I covered the Analysis Macroeconomic Report on State Budget Execution (REO) 2015, Part II covered the Sector Analysis and Part III explored issues related to financing, including the breakdown by scope.
The most notable weaknesses that were identified in Parts I to III of this series of Notes are summarized in Appendix 1. Before analyzing the consequences of these weaknesses, this Part IV adds one more serious weakness: the fact that the Government aggregates lines without information content, such as “Other Operations”. It turns out that this is what the Government did with the Conta Geral do Estado1 – which is supposed to be the definitive account presented by the Government. In the case of the CGE, “Other Operations” appear in the Financing, with a negative sign2, in an amount of 42.1 billion Meticais (MMT), equivalent to US$ 937.2 million.3 It should be emphasized that this transaction did not appear in the REO 2015 .
