[2019-11-18] São Tomé and Príncipe 2020 State Budget has half of the expenditure covered by domestic revenue

Source: Macauhub

São Tomé and Príncipe’s proposed 2020 State Budget Law, with an estimated expenditure of 143 million euros, for the first time outlines that more than 50% of this amount will be covered by domestic revenues, said the Minister of Planning and Finance.

Osvaldo Vaz, who last week submitted the draft bill and ‘major options of the plan’ to Parliament, said its expenses were expected to be covered by 52.4% of domestic revenues, with the remaining percentage covered by external revenues.

The minister stressed that the 2020 budget was prepared with the “collaboration and support” of the International Monetary Fund (IMF), particularly with regard to current income and expenses, according to German newspaper Deutsche Welle.

Vaz explained that the Government intends to “exercise prudent financial management and make the country more financially disciplined,” underlining that the budget forecasts were made “sustainably, analysed and discussed with the IMF.”

The minister said that the inflation rate should be 5.4% in 2020, that the primary deficit should remain at 2.1% of gross domestic product (GDP) and that the country should have currency to cover three and a half months of imports.

Vaz gave no indication of the forecast for economic growth for 2020, but simply stated that the [economic growth] rate by the end of 2019 will be higher than last year.