Mozambique’s Minister of Economy and Finance, Adriano Maleiane, estimates that the Mozambican state will have lost MZN 21B in revenue (€249.5M) as a result of the coronavirus pandemic by the end of the year.
The Mozambican government will this week submit to Parliament, the Assembly of the Republic, a proposal for a State Budget (OE) amendment which addresses the impact of Covid-19 on public accounts.
Minister of Economy and Finance Adriano Maleiane spoke to the press on Monday, on the sidelines of a meeting with the deputies of the Planning and Budget Commission (CPO) of the Mozambican Parliament.
“Naturally, when there is a drop in revenue, there is always a need to rearrange priorities, so that the larger [macroeconomic] goals are not severely affected,” said Maleiane.
The government official estimates a loss in state revenues of MZN 21B (€249.5M) by the end of the year.
“We have to ensure that what we planned for Health and Education will suffer a minimum of negative effects, through a redirecting of priorities in order to face the shortfall which is taking place,” he stressed.
Minister Maleiane said that Mozambique would miss the goal of MZN 235B (€2.79B) in projected revenues for this year because of the drop in economic activity resulting from Covid-19.
Revenues, he continued, would fall to MZN 215B (€2.55B) this year, with tourism the sector worst affected.
The new amended State Budget would also reflect the external support that the country had received and the changes in relation to economic growth figures.
The 2020 State Budget had projected a 4% growth in Mozambique’s gross domestic product (GDP), but this figure has already been revised down to 2.5% in the final document approved by the Assembly of the Republic. Meanwhile, the latest revision points to a GDP growth of between 0.8% and -1.2%.
Source: Miramar via Club of Mozambique