Mozambique ranks in the bottom 20 of the human development index. This measures a country’s progress based on key dimensions such as a long and healthy life and a decent standard of living. Nearly two-thirds of Mozambicans – 18.9 million people – live below the national poverty line of US$0.70-a-day.
The country also struggles to finance public spending, consistently running state budget deficits . At the same time it also fails to spend all the money that’s been budgeted.
Mozambique’s frequent budget deficits are no surprise. The country has a rapidly growing population, increasing needs of the poor populations, dilapidated infrastructure, and very limited revenue generation.
