Citizens whose monthly income is less than 2,500 meticais (about 80 US dollars) will be eligible to receive a government subsidy on a basic basket of goods.The subsidy was recently announced by the government as part of measures to alleviate the high cost of living. It is to replace the general subsidies currently in place on some foods.Food will not be given away. Instead the government will set a reference price for a basket of goods and will pay the difference between this price and the market price. It is currently estimated that the food basket will be fixed at 824 meticais a month, and the government subsidy will cover the difference between this fixed price and the market price for the products.There had been criticism that not enough people were going to be covered by the scheme, which had originally been set at those earning less than 2,000 meticais.On Tuesday the Council of Ministers (Cabinet) agreed to alter the eligibility to include those earning up to 2,500 meticais.According to government spokesperson Victor Borges, 1.8 million people could benefit from the subsidy. He said that the process to register the beneficiaries should begin soon.In its first phase the programme will cover residents in the provincial capitals, and will take place between June and December.The basic basket of food will include maize flour, rice, fish, beans, peanuts, oil and bread.The Council of Ministers also approved the ratification of an agreement between the Mozambican government and the Export Import Bank of India for a loan of 20 million US dollars to finance a project to increase productivity in the cultivation of rice, wheat and maize in the provinces of Gaza, Nampula, Tete and Manica.The Council of Ministers also looked at the launching of the second growing season, the implementation of projects funded by the Millennium Challenge Account (MCA), and the balance of dismissals and retirements from the state apparatus in 2010.
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