The present policy note analyzes inequalities in the allocation of State financial resources in the social sectors, focusing on the health sector, in a context of a downward trend in the budget share and a reduction in external financing as well as a more generalised fiscal crisis, with implications for the allocation of resources to the sector.

The study proposed some bases for a political economy perspective on budgeting in Mozambique that go beyond conventional analyses of the budgetary process, which tend to focus on institutional dynamics and rules and regulations, including the stakeholders who govern the budgetary process. It was argued that these institutional and legal aspects of the budgetary process, as well as the stakeholders involved, are fundamental for a political economy analysis. The perspective offered seeks to situate the budgetary process within the framework and logic of accumulation in the specific historical context of Mozambique.

Some of the recommendations include: (i)There should be greater involvement of the different stakeholders in the health sector in defining priorities for resource allocation. This involvement requires better negotiation of resource allocation parameters within the sector, taking into account the macroeconomic and fiscal constraints imposed on the executive in the current context of budgetary crisis. For example, to what extent can the social and economic rationale for investment in health prevail as bargaining power for allocating additional resources to the sector, in a context of fiscal and macroeconomic constraints?; (ii)Structural problems in the economy that generate cyclical budgetary crises must be addressed, rather than responding through cuts that disproportionately affect sectors fundamental to social welfare and economic development. Health is a key factor in economic productivity, particularly in a context where there is growing discourse around economic and social transformation. Both health and education are fundamental to this process. Read more...