The 2020 State Budget (SO) was approved in a context in which the country was already beginning to feel the negative effects of the Covid-19 pandemic. Notwithstanding the prospects of global economic recession, and particularly of the national economy, the government approved this State Budget based on unrealistic and overly optimistic assumptions.
In the first months of the pandemic in the country, it was expected that the greatest budgetary needs would be in the health sector, but, over time, almost all economic and social sectors have been greatly affected by this pandemic. Therefore, the effects of Covid-19 have shown that budget priorities in the country have changed over time, revealing a need for restructuring them.
Given the current situation caused by the new coronavirus pandemic, there is a need for the Ministry of Economy and Finance to take certain specific decisions in order to ensure the minimization of the negative impacts of this pandemic on the economy and on the life of the Mozambican population, and this includes revision of OE 2020 through an amending budget.
