Mozambique: Government proposes additional 28.7 billion meticais to state budget

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Mozambique: Government proposes additional 28.7 billion meticais to state budget

1:25 CAT | 06 Oct 2020

File photo: DW

The Mozambican government’s proposal for an amending budget submitted to parliament suggests an increase of 28.7 billion meticais in the 2020 State Budget, increasing total executive expenditure to more than 374 billion meticais.

The government says in justification that “the proposal for the amending budget was prepared taking into account the international context of economic slowdown, the reduction in prices of primary products and the slowdown in economic activity consequent on the outbreak of the Covid-19 pandemic”.

Of the new expenditure, 231 billion meticais is earmarked for operating costs, about 90.5 billion for investment and 52.4 billion for financial operations.

The budget deficit will be fixed at 159.9 billion meticais.

According to the proposed amending budget, which ‘O País’ has seen, internal resources will have greater weight, with 214.1 billion meticais revenue collection foreseen, especially tax revenue (195.6 billion meticais) and revenue from the alienation of state assets (9.9 billion meticais), plus an estimated 53 billion meticais in borrowing.

By Edson Arante

Source: O País