April 2003 © 2003 International Monetary Fund IMF Country Report No. 03/98 Republic of Mozambique: Poverty Reduction Strategy Paper Progress Report Poverty Reduction Strategy Papers (PRSPs) are prepared by member countries in broad consultation ‘with stakeholders and development partners, including the staffs of the World Bank and the IMF. Updated every three years with annual progress reports, they describe the country's macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated ‘extemal financing needs and major sources of financing. This country document for the Republic of Mozambique, dated February 2003, is being made available on the IMF website by agreement with the member country as a service to users of the IMF website. To assist the IMF in evaluating the publication policy, reader comments are invited and may be sent by e-mail to publicationpolicy@imf.org. Copies of this report are available to the public from International Monetary Fund « Publication Services 700 19" Street, N.W. # Washington, D.C. 20431 ‘Telephone: (202) 623-7430 « Telefax: (202) 623-7201 E-mail: publications@imf.org « Intemet: http:/Awww.imf.org Price: $15.00 a copy International Monetary Fund Washington, D.C.Republic of Mozambique MINISTRY OF PLANNING AND FINANCE Ble a TANZANIA sent cinn ie Nacain 2, Nampula" a Zana al = himelo ~ MAPUTO, FEBRUARY 2003TABLE OF CONTENTS INTRODUCTION. I - THE NATIONAL MACROECONOMIC SETTING. I— INTEGRATION OF GOVERNMENT PLANNING, MONITORING AND EVALUATION INSTRUMENTS... TL 1. Issues relating to the Economic and Social Plan (ESP). Tl. 2. Issues relating to the State budget (SB) IL 3. Monitoring and evaluation. - IlL- EVALUATION OF PARPA IMPLEMENTATION UL. 1 Sectoral performance in the fundarental action areas (1995-2000) 1 (a) Education sector - sn 8 (0) Health sector. on - 2 (6) Agriculture and rural development. - seo 9 (@) Infrastructure. 2B (¢) Good governance, legality and justice, decentralization and deconcentration -.....27 IIL.2. Evaluation of expenditure in Fundamental Action Areas - 1999-2002, 30 (a) Total expenditure - soon] (0) Current expenditure fev 34 (6) Investment Expenditure. 35 (d) Execution of current and investment SB for mary September 2002. 36 (e) Geographic distribution of expendittre.n..re (@ Conclusions GENERAL CONCLUSIONS AND RECOMMENDATIONS. 1. Improvement of the budget and planning system 2. Monitoring and evaluation procedures. 3. Achievement of physical and financial targets and other programmed actions. 45