The government today announced the reduction of the budget deficit (before grants) from 7.9% to 4.8% of gross domestic product (GDP).

"The budget policy for 2021 focused on actions in the tax area with a view to increasing and diversifying the levels of revenue capture and on rationalizing public spending given the limitation of resources," reads the General State Account for 2021.

Between 2020 and 2021, state revenues will grow from 235 billion to 266 billion meticais, a faster pace than the rise in expenditures, from 312 billion to 319 billion meticais.

In the last year, the Mozambican economy recorded a growth of 2.16%, after a retraction of 1.23% in 2020, due to restrictions to curb the covid-19 pandemic.