The Mauritanian budget recorded a deficit of 5% of GDP, due to the economic and social repercussions of the Coronavirus.
The Mauritanian Ministry of Finance revealed that the 2020 budget, which was approved to be amended, amounted to 70 billion ounces, while the budget deficit reached 15 billion ounces as a result of increased expenses for financing urgent economic and health measures, declining incomes, slowing activity, contraction of international trade and exemptions that the pandemic dictated.
According to the ministry, 7.9 billion ounces were provided at the expense of the budget, including two billion ounces to rationalize the running of state interests and postpone the deadline for debt repayment that Mauritania recently benefited from, as 1.4 billion ounces of debt returns will be provided, in addition to 4.5 billion ounces of debt consumption and the exemption of goods and activities that go into fighting the epidemic. (The dollar equals 37.7 ounces).
The ministry revealed that the Mauritanian economy has begun to be affected by the shock due to the precautionary measures taken to confront Corona, expecting that the growth rate for the current year will not exceed 2% after the expectations of a 6.3% growth for 2020.
The Ministry announced that some measures would be taken to raise the level of levies by reviewing all fines for increasing them and adding conditions to the procedure for accrediting foreign company representatives in order to prevent tax evasion and reduce the discount rates to reduce cash payment.
Source (New Arab newspaper, Edited)
