Africa Budget Economy FA Finance Mozambique

Mozambican 2020 State Budget deficit lower than expected

The deficit in the execution of the Mozambican budget in 2020, between State revenues and total expenditure, was smaller than forecast, according to a balance published by the Government.

“State revenue of 236 billion meticais (£2.22B) was collected, equivalent to 110% of the annual forecast, with total expenses having reached the amount of 337 billion meticais (£3,17B), corresponding to 90% of the annual budget “, the document reads. In summary, the deficit was 101 billion meticais (£952M).

The ‘Balance of the Economic and Social Plan in 2020’, published on the portal of the Ministry of Economy and Finance, shows the execution of last year’s State Budget, approved in April and revised in September to accommodate the impact of covid-19.

To cover the deficit, the State used 70 billion meticais (£660M) for domestic financing and 59 billion meticais (£556M) for external financing.

After mobilising all the resources, the execution of the State Budget ended with a balance of about 29 billion meticais (£273M).

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Part of the amount corresponds to “external credit disbursement”, in this case, “to the International Monetary Fund (IMF) Rapid Credit Facility to support the State Budget in the context of the COVID -19 pandemic.

Part of it also relates to the balance of projects financed with capital gains charged in 2019 and some revenue collected in the last days of the month, adds the balance sheet.

The impact of covid-19 caused the Mozambican Gross Domestic Product (GDP) to fall 1.28% in 2020, according to data from the Mozambican National Statistics Institute (INE).

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