Covid-19: State Budget tax base “compromised” – Government | Mozambique

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Covid-19: State Budget tax base “compromised” – Government | Mozambique

2:29 CAT | 06 Apr 2020

Deputy minister of Justice, Constitucional and Religious Affairs Filimão Swaze. [File photo: TVM]

The Council of Ministers on Friday approved the draft State Budget (OE) and Economic and Social Plan for 2020, while recognising that the tax base is being compromised by the Covid-19 pandemic.

“There must be no doubt that our tax base is compromised, namely with the instruments [and measures] that have been approved regarding the emergency issue” spokesman for the Council of Ministers and deputy minister of Justice, Constitutional and Religious Affairs Filimão Swazi told a press conference after an extraordinary meeting of the Council of Ministers in Maputo.

“It is easy to see that there will be an atypical [state budget] exercise as regards the functioning of our tax base. A series of adjustments must be made so that we can perform in a way that is favourable for the continuous development of our economy,” he added.

In any case, [the sectors of] infrastructure and health “will necessarily have to be given greater attention” he said, taking also into account the need for reconstruction after the 2019 cyclones and the current pandemic threat.

The State Budget proposal approved on Friday and to be presented to parliament foresees revenues of 235.5 billion meticais (about €3.2 million) and expenses of 345.3 billion meticais (€4.8 billion), giving a deficit of 109.8 billion meticais (€1.5 billion).

“More than the numbers, we must look at the circumstances in which we find ourselves, which are atypical,” Swazi said.

Foreseeing 365 actions, the document already includes the downward revision of the gross domestic product growth rate to 2.2% for 2020 – the same as in 2019.

Mozambique has ten officially registered cases of Covid-19 infection, one of which is a full recovery, and all with mild symptoms. By Sunday, authorities had conducted 363 tests since the beginning of the pandemic on 11 March.

The country is in a state of emergency throughout the month of April, with the mandatory closure of entertainment and leisure establishments, a prohibition on all types of events and gatherings of more than 20 people, and constraints on transport capacity.

Schools have been closed and the issuing of entry visas suspended.

The security forces have been mandated to intervene to ensure compliance with the measures, which may also include further limitations on circulation in the event of an exponential increase in cases.

The new coronavirus responsible for the Covid-19 pandemic has already infected more than one million people worldwide. More than 57,000 have died, and more than 205,000 are considered fully recovered.

Source: Lusa