Maputo - The Mozambican government has outlined plans to reduce total public spending by 0.5 percentage points next year, in a continuing attempt at "fiscal consolidation". However, estimates point to a budget deficit of 10.4% of Gross Domestic Product (GDP) for 2024.
Documents supporting the proposed Economic and Social Plan and State Budget (PESOE) for 2024 reveal the government's determination to "maintain the pace of fiscal consolidation and the improvement of public debt sustainability parameters, in the medium term".
The PESOE 2024 reflects the continuation of a restrictive approach to budget policy, with a forecast reduction in total expenditure, as a percentage of GDP, of about 0.5 percentage points. This strategy aims, in the medium term, to improve fiscal sustainability, thus creating the conditions to ensure the country's macroeconomic stability.
This document will be debated and subsequently voted on at the 8th ordinary parliamentary session, taking place in Maputo, between 19 October and 21 December.
According to the budget proposal for 2024, Mozambique will face a budget deficit of 159,488.5 million meticais, representing 10.4% of GDP.
Forecasts indicate that the Government expects to collect, through State revenue, an amount of 383,537.5 million meticais next year. This figure corresponds to 25% of the estimated GDP for 2024. On the other hand, public spending is projected to represent 35.2% of GDP, a total of 8,028 million meticais.
The Mozambican economy faces significant challenges, and these measures reflect the Government's attempt to balance the public accounts, while ensuring economic stability and fiscal sustainability in the medium term.
