Unpacking the ‘Black Box’ of Public Expenditure Data in Africa: Quantification of Agricultural Spending Using Mozambique’s Budget Reports

Tewodaj Mogues; Leonardo Caceres

doi:10.5334/dsj-2018-009

Figures & Tables

Table 1

Comparison of expenditure data in the three reports (in millions of Mozambican meticais^a).

Report Data included in the report	2010	2011	2012	2013
Total Expenditures
LOE
Budget [1]	117,977	132,403	163,035	174,955
REO^b
Initial budget allocation [2]	117,977	132,403	163,035	174,955
Current budget [3]	117,977	141,757	163,035	194,873
Realised expenditures [4]	107,710	131,248	139,838	180,988
CGE
Initial budget allocation [5]	117,977	132,403	163,035	174,955
Final budget allocation [6]	117,977	141,757	163,035	196,372
Realised expenditures [7]	109,820	125,932	144,590	190,564
Execution rate [7]/[1]	93.09%	95.11%	88.69%	108.92%
Agriculture expenditures
LOE
Budget [8]	6,177	6,396	5,155	8,124
Agriculture (adm. code 35)	4,694	3,781	4,057	6,832
Fisheries (adm. code 37)	1,483	2,615	1,098	1,292
REO^b
Final budget allocation [9]	5,210	7,742	6,104	6,633
Budget execution [10]	4,045	4,013	3,817	4,938
CGE
Final budget allocation [11]	5,703	5,666	5,420	6,331
Realised expenditures [12]	4,283	4,092	3,906	5,045
Execution rate [12]/[8]	69.34%	63.98%	75.77%	62.10%
Ag+Fisheries/Total [12]/[7]	3.90%	3.25%	2.70%	2.65%

[i] Notes: ^a Unless otherwise indicated. ^b Cumulative data from the fourth quarter report.

Table 2

Classifiers available on e-SISTAFE.

Classifier	Objectives/description
Functional	Organises public spending based on the purpose underlying the expenditures. The functional classification is based on the internationally developed Classification of the Functions of Government (COFOG), in use by the United Nations, the International Monetary Fund, and the Organisation for Economic Co-operation and Development (OECD), among other international organisations. This classifier categorises public spending into, for example, health, education, defence, etc.
Administrative	Identifies the government body or institution responsible for budget formulation and execution. Administrative classification organises public spending, for example, in spending undertaken by the ministry of agriculture, ministry of public works, the president’s office, etc.
Economic	Allows identification of the economic nature or type of the expenditure. Like the functional classification, international standards have also been developed for the economic classification. The two broad categories are recurrent and capital spending, within recurrent spending are salaries, expenses on goods and services, subsidies to stakeholders, etc.
Programmatic	Expresses public expenditures in terms of the government’s programmatic objectives, goals, and outcomes to be achieved. Components of expenditures by this classification often map directly into specific governmental policies. Examples are spending on: good governance, poverty reduction, combatting HIV/AIDS, etc.
Territorial	Allows registration of expenditure according to the territorial division of the country (central, provincial and district, and allocation to each jurisdiction at the provincial and district levels).
Priority sectors	Is used according to Mozambique’s Government Five-Year Plan and its Poverty Reduction Strategy.
Currency	Used for coding of the currency used by donor and lenders of the state.
Budget unit	Identifies the state body or institution responsible for budget formulation and execution. This is very similar to, though not identical with, the administrative classification.
Budget coverage	Classifies according to the legal administration of the institution. Its main objective is to comprehensively incorporate all the central government and subnational institutions as well as state enterprises.
Sectoral	Is an extension of the programmatic classifier. It details the actions that are part of sectoral, provincial, or local plans.
Sectional	Is an extension of the sectoral classifier. It details the actions need to be implemented by a cost centre.
Management	Allows for individual accounts as defined by SISTAFE law: public institutions, autonomous institutions, municipalities, and state companies.
Financial status	Identifies the financial status according to its financial and administrative autonomy.

[i] Note: e-SISTAFE = Sistema Electrónico de Administração Financeira do Estado (Mozambique’s integrated financial management information system).

Table 3

Administrative classification of the Ministry of Agriculture and Ministry of Fisheries, up to the four-digit level of the 2012 coding system.

Until 2012 [2]	As of 2013 [3]
*Ministry of Agriculture*	35	35
Ministry of Agriculture	3501	35A	00 0141
Food and Nutritional Security Technical Secretariat	3503	35A	00 1541
National Institute of Irrigation	3505	35A	00 5041
Provincial Directorate of Agriculture	3521(01–11)	35(B-L)	00(0141/2141)^a
Cotton Institute delegation	3522	35(C-I)	00 1941
Delegation of the National Cashew Institute	3528	35(C-K)	00 2041
Provincial Delegation of Agriculture Promotion	3529	35(D-J)	00(1241/1341/1541)
Mozambique Cotton Institute	3581	35A	00 1641
National Cashew Institute	3582	35A	00 2141
Agrarian Research Institute of Mozambique	3586	35A	00 3641
Agriculture Promotion Centre	3590	35A	00 4341
Training Institute on Land and Cartography Administration	3591	35A	00 3341
National Centre for Cartography and Remote Sensing	3592	35A	00 4841
Agricultural Development Fund	3593	35A	00 4941
*Ministry of Fisheries*	37	37
Ministry of Fisheries	3701	37A	00 0141
National Board of Fisheries	3702	37A	00 0641
School of Fisheries	3707	37A	00 0541
Provincial Fisheries	3721	37(B-K)	00 0141
Delegations of National Aquaculture Development	3726	37(B-G)	00 0341
Fisheries Development Fund	3781	37A	00 0841
National Institute for Fisheries Research	3782	37(A-K)	00(1241/0541)
National Institute for Development of Small-Scale Fisheries	3783	37(A-K)	00(0941/2041)
National Institute of Fish Inspection	3784	37(A-K)	00(1141/0441)
National Institute of Aquaculture Development	3786	37A	00 1041

[i] ^a Here, and analogously elsewhere in this table, ‘35(B-L) 00(0141/2141)’ means that, depending on the province in question, the code may be 35B00 0141 or 35B00 0141 for the Niassa or the Cabo Delgado Provincial Ministry of Agriculture, respectively, etc. Furthermore, the code for the central or provincial mother ministry of agriculture changed, so that depending on the year, for example, Niassa’s provincial mother ministry of agriculture was coded either as 35B00 0141 or 35B00 2141.

Table 4

Public expenditures on agriculture in 2013, by administrative classification (in millions of Mozambican meticais^a).

Administrative classifier^b		LOE [1]	REO realloc. [2]	REO exec. [3]	CGE realloc. [4]	CGE realised [5]	Execution rate [5]/[1]
35	*Ministry of Agriculture*	*6,832*	*5,418*	*3,998*	*5,012*	*4,111*	*60.2%*
3501	Ministry of Agriculture	1,516	1,710	1,343	1,508	1,371	90.4%
3503	Food and Nutritional Security Technical Secretariat	15	13	13	17	17	113.3%
3505	National Institute of Irrigation	33	0	0	38	29	87.9%
3521	Provincial Directorate of Agriculture	1,137	1,270	1,029	1,428	1,097	96.5%
3522	Cotton Institute Delegation	28	22	20	21	21	75.0%
3528	Delegation of the Cashew Institute	101	99	95	98	98	97.0%
3529	Provincial Delegation of Agriculture Promotion	29	28	27	27	27	93.1%
3581	Mozambique Cotton Institute	187	182	179	180	179	95.7%
3582	National Cashew Institute	161	126	71	200	71	44.1%
3586	Agrarian Research Institute of Mozambique	319	477	149	299	145	45.5%
3590	Agriculture Promotion Centre	261	264	133	159	134	51.3%
3591	Training Institute on Land and Cartography Administration	29	26	25	25	25	86.2%
3592	National Centre for Cartography and Remote Sensing	89	84	51	48	48	53.9%
3593	Agricultural Development Fund	2,929	1,118	862	961	848	29.0%
37	*Ministry of Fisheries*	*1,292*	*1,215*	*940*	*1,318*	*934*	*72.3%*
3701	Ministry of Fisheries	175	227	201	220	201	114.9%
3702	National Board of Fisheries	66	73	63	74	63	95.5%
3707	School of Fisheries	30	31	29	54	29	96.7%
3721	Provincial Fisheries	105	110	108	46	46	43.8%
3726	Delegations of National Aquaculture Development	19	56	21	45	10	52.6%
3781	Fisheries Development Fund	148	200	178	175	163	110.1%
3782	National Institute for Fisheries Research	120	137	103	132	107	89.2%
3783	National Institute for Development of Small-Scale Fisheries	463	174	111	365	187	40.4%
3784	National Institute of Fish Inspection	96	94	73	93	75	78.1%
3786	National Institute of Aquaculture Development	71	113	51	113	51	71.8%
Agriculture + Fisheries		8,124	6,633	4,938	6,331	5,045	62.1%

[i] Notes: ^a Unless otherwise indicated. ^b This table references the administrative coding system that was in place through 2012, although the coding system subsequently changed effective 2013 (for further details on this change, see Table 3). The previous coding structure is used here for easier subsequent comparison with the data in Table 10.

Table 5

Economic classification, up to the three-digit code level.

Code	Description	Code	Description
1	Current Expenditure	2	Capital Expenditure
11	Personnel costs	21	Capital goods
111	Wages and salaries	211	Construction
112	Other staff costs	212	Machinery, equipment, and furniture
12	Goods and services	213	Means of transport
121	Goods	214	Other capital goods
122	Services	22	Capital transfers
13	Debt burden	221	Capital transfers to public administrations
14	Current transfers	222	Capital transfers private administrations
141	Current transfers to public administrations	223	Capital transfers to households
142	Current transfers to private administrations	224	Other capital transfers
143	Current transfers to households	23	Financial operations
144	Current transfers abroad	231	Active financial operations
15	Subsidies	232	Passive financial operations
16	Years ended	24	Other expenses of capital
161	Pay back
162	Back payments of goods and services
163	Pension retroactive
164	Other payments for six-month periods ended
17	Other current expenditure

Table 6

Agriculture and fisheries public expenditure in 2013 by economic classification and operational/investment distinction (in millions of Mozambican meticais).

Operational/investment categorisation and economic classifier (categories)	LOE [6]	CGE realloc. [7]	CGE realised [8]	Execution rate [7]/[6]
*Operational category (funcionamento)*	*1,760*	*1,662*	*1,388*	*78.9%*
Staff expenses	1,004	957	914	91.0%
Good and services	671	615	422	62.9%
Current transfers	83	73	37	44.6%
Capital goods	2	2	1	50.0%
Others	0	15	14	n/a
*Investment category (investimento)*^a	*6,364*	*4,669*	*3,657*	*57.5%*
Total	8,124	6,331	5,045	62.1%

Table 7

Agricultural public expenditures (CGE realised expenditure), by functional classification level 4 (in millions of Mozambican meticais).

Code	Description	2010	2011	2012	2013
04211	Land management^a	0
04212	Agrarian reform	5	24	45	13
04213	Prices and agricultural productivity	3	4
04214	Rural extension	63	158	107	405
04215	Veterinary	89	96	66	61
04216	Pest control	40	25		52
04219	Other services NEC	297	275	226	166
04221	Forestry			11
04231	Fishing	603	470	546	614
04232	Hunting^a	0
04241	Livestock	38	18	6	6
04251	Irrigation	260	301	223	398
04291	Agriculture, forestry, fishing, and hunting NEC	2,105	2,017	1,894	2,972
042	Agriculture, forestry, fishing, and hunting	3,502	3,386	3,124	4,687

[i] Notes: NEC = not elsewhere classified. ^a Zero in 2010 in Land Management and Hunting are positive values rounded. The actual numbers are 0.072 MMT and 0.215 MMT respectively.

Table 8

Programmatic classification categories.

OCPQG Code	AE Code	AE Description
BGD	AAE	Administration of State Apparatus
BGD	DAL	Decentralisation and Development of Local Government
BGD	ICS	Information and Media
BGD	OST	Order, Public Safety and Tranquillity
BGD	RSJ	Reform of the Justice Sector
BGD	RSP	Public Sector Reform
CPD	DMC	Democracy
CPD	DMG	Demining
CPD	UNI	National Unity
DEC	AGR	Agriculture, Fishery, Forestry and Livestock
DEC	AMB	Environment
DEC	COM	Trade
DEC	DIE	Development of Infrastructure
DEC	DRU	Rural Development
DEC	GMD	Macroeconomic Management and Financial Systems Development
DEC	IND	Industry
DEC	PAI	Promotion and Attraction of Investment
DEC	PES	Fishery
DEC	RCM	Mineral Resources
DEC	THE	Work, Health and Safety and Employment
DEC	TRC	Transport and Communications
DEC	TUR	Tourism
DHS	AGS	Water and Sanitation
DHS	CTI	Science, Technology and Innovation
DHS	CUL	Culture
DHS	DPT	Sports
DHS	EDU	Education
DHS	HAB	Housing
DHS	HIV	HIV and AIDS
DHS	JUV	Youth
DHS	LDD	National Liberation and Defence of Sovereignty and Democracy and the War-Disabled—Demobilisation
DHS	MAS	Women, Family, and Social Action
DHS	SAU	Health
RCI	REX	External Relations
RDS	DSN	Defence of National Sovereignty

Table 9

LOE 2013 Agricultural budget, by programmatic classification (in million Mozambican Meticais).

Level	Code	Description	2010	2011	2012	2013
OCPQG Objective	DEC^a	Combating poverty and promoting the culture of work – economic development	38,580	50,371	69,305	61,427
Strategic Area (AE)	DEC-AGR	Agriculture, livestock, forestry and wildlife	3,163	2,731	3,019	5,436
*Strategic Subarea (SAE)*	*DEC-AGR-00*	*Agriculture, livestock, forestry and wildlife*	*2,207*	*2,731*	*3,019*	*5,436*
	DEC-AGR-00-AGR01	Administrative institutional support		68	353	299
	DEC-AGR-00-AGR02	Agricultural production and productivity	199	2,396		121
	DEC-AGR-00-AGR03	Management of natural resources	2,008
	DEC-AGR-00-AGR04	Production oriented market		245	3	12
	DEC-AGR-00-AGR06	Use and utilisation of land		22	270
DEC-AGR-00-AGR11	Agricultural production			1,424	4,266
DEC-AGR-00-AGR12	Agricultural productivity			90	172
DEC-AGR-00-AGR13	Natural resource management			879	565
*DEC-AGR-01*	*Food security*	*956*
DEC-AGR-01-AGR02	Agricultural productivity	929
DEC-AGR-01-AGR03	Natural resource management	27
	*DEC-DRU-00*	*Rural development*		*3,028*	*2,786*	*1,998*
Total	DEC-AGR + DEC-DRU-00	Agriculture, livestock, forestry and wildlife + rural development	3,163	5,759	5,805	7,434

[i] Note: ^a The total expenditure at the DEC level contains more than the AE level expenditures shown here. The other AE level expenditures of DEC are not shown here for economy of space, since they do not relate to agriculture.

Table 10

Agricultural and rural development realized expenditure (CGE), by priority-sector and administrative classification (in millions of Mozambican meticais).

Broad priority-sector categories and administrative classification		2010	2011	2012	2013^b
Agriculture		3,719	3,980	10,358	13,354
01	Office of the President	14	39	5,446	6,923
0122	District Administrations	14	39	5,446	6,923
03	Office of the Prime Minister	100	34
0311	Development Agency of the Zambeze valley	100	34
26	Ministry of Planning and Development^c	225	558	1,101	1,446
2601	Ministry of Planning and Development	225	220	191	267
2607	National Institute of Statistics			268
2609	Millennium Challenge Account Program		338	462	548
2628	Special Economic Zones			18
2681	Development Agency of the Zambeze valley			65	558
2683	Centre for Investment Promotion			47
2685	Office for Accelerated Development Economic Areas			48
2687	Fund for Economic Rehabilitation			1	72
35	Ministry of Agriculture	3,380	3,349	2,998	4,024
3501	Ministry of Agriculture	1,186	1,185	1,218	1,364
3503	Food and Nutritional Security Technical Secretariat		7	7	17
3521	Provincial Directorate of Agriculture	1,316	1,003	817	1,032
3522	Cotton Institute Delegation	1	8	14	21
3528	Delegation of the Institute for Promotion of Cashew Nuts	29	37	52	98
3529	Provincial Delegation of Agriculture Promotion			23	27
3581	Mozambique Cotton Institute	48	62	91	179
3582	Institute of promotion of cashew nuts, INCAJU	194	291	115	71
3586	Agrarian Research Institute of Mozambique	306	265	177	149
3590	Agriculture Promotion Centre	196	245	110	134
3591	Training Institute on land and cartography adm.	16	21	20	25
3592	National Centre for Cartography and Remote Sensing	25	36	25	51
3593	Agricultural Development Fund (FDA)	63	190	327	854
37	Ministry of Fisheries			813	961
3701	Ministry of Fisheries			241	201
3702	National Board of Fisheries			45	63
3707	School of Fisheries			19	29
3721	Provincial Fisheries			69	108
3726	Delegations of the National Aquaculture Development			8	21
3781	Fisheries Development Fund			151	163
3782	National Institute for Fisheries Research			78	107
3783	National Institute for Development of Small Scale Fisheries			121	142
3784	National Institute of Fish Inspection			44	75
3786	National Institute of Aquaculture Development			37	51
Rural Development				198	194
25	Ministry of State Administration			81	79
2501	Ministry of State Administration			77	68
2509	National Institute of Disaster Management			4	8
2521	Provincial Directorate of Support and Control				4
41	Ministry of Industry and Trade			118	115
4101	Ministry of Industry and Trade			110	109
4121	Provincial Directorate of Industry and Trade^a				0
4185	Institute for Promotion of small and medium enterprises			7	5
Total Agricultural and Rural Development		3,719	3,980	10,557	13,548

[i] Notes: ^a Zero in 2013 Provincial Directorate of Industry and Trade stands for a rounding issue. The actual number is 0.30 MMT. ^b The 2013 data was matched to the administrative coding system that was in place through 2012, although the coding system subsequently changed effective 2013 (for further details on this change, see Table 3). This is done for easier comparison of the data across years in this table.

^c This also includes rural development expenditure.

Comparison of agricultural public expenditures across different data sources, 2010–2013 (in millions of Mozambican meticais).
*Notes:* GFS = Government Finance Statistics; SPEED = Statistics on Public Expenditures for Economic Development.