The present policy note analyses the fiscal space in Mozambique between 2010 and 2023, with a focus on identifying opportunities for strengthening health sector financing. It seeks to systematically analyze the Mozambican fiscal space and identify potential “dormant fiscal reserves” – resources that are not being optimally mobilized or used – which could be directed towards strengthening the health sector.

Some of the recommendations presented include: (i) Tax Administration Reform: Implement improvements in collection systems, with a focus on increasing tax compliance, reducing tax evasion and expanding the tax base. Special attention is recommended to modernising technology, training staff and simplifying procedures to reduce compliance costs, particularly for small and medium-sized enterprises; (ii) Improving the Management of Non-Tax Revenue: Establish more robust mechanisms for the accounting, management and transparency of non-tax revenue. It is recommended that an integrated information system be created to allow real-time monitoring of this revenue and its detailed inclusion in the State General Accounts; (iii) Restructuring of Public Spending: Implement a comprehensive review of the spending structure, with the aim of reducing non-priority spending and redirecting resources to productive and social investments, especially in health. It is recommended that a expenditure review program be established with the participation of independent experts and representatives of civil society. Leia mais...