Mozambique: State revenues dropped by 14.8% in 2020 – Carta

Login

Register

http://www.clubofmozambique.com/

Mozambique: State revenues dropped by 14.8% in 2020 – Carta

6:48 CAT | 10 Feb 2021

in file CoM

The Mozambican state’s revenues decreased by 14.8% in 2020, compared to 2019.

According to figures presented this Tuesday by Deputy Minister of State Administration and Public Service, Inocêncio Impissa, after the IV Ordinary Session of the Council of Ministers, in 2020, the Mozambican tax authorities raised 236,321.5 (110.4%) million meticais of the downwardly revised 214,141.7 million meticais target, against the 276,788.2 million meticais collected in 2019.

Impissa told the press after the cabinet session that the “low” performance of the Mozambican economy was due to the outbreak of the new coronavirus pandemic and to terrorist and military attacks in the province of Cabo Delgado and in the central region of the country, which limited economic activity.

Revenue collection, however, stood at more than 100% of the revised target, due to macroeconomic stability.

Total state expenditure stood at 337,397.3 million meticais, 90.2% of the 374,096.6 million meticais foreseen, against 313,621.4 million meticais spent in 2019. Impissa did not advance any explanation for this, but the fight against terrorism is known to have cost the state millions of meticais. In fact, by the end of the first half of last year, the defence sector no longer had funds to continue with its operations.

PES fulfilled by 75%

The 2020 Economic and Social Plan (PES) was75% fulfilled, Impissa said. Of the 548 indicators, 411 (75%) reached their targets, 296 (54%) fully and 115 (21%) partially.

Impissa further remarked that, in 2020, Mozambique experienced a macro-economic stability characterised by, on the one hand, an increase in the coverage of Net Internal Reserves, which rose from the 5.8 months forecast in the PES to 6.0 months, and, and on the other hand, by the stability of inflation, which stood at 3.14%, against 2.78% in the same period of 2019, and well below the 6.6% forecast for 2020.

By Evaristo Chilingue

Source: Carta de Moçambique