The government plans to cut total public spending by 0.5 percentage points in 2024, maintaining the pace of "fiscal consolidation", but forecasting a budget deficit of 10.4% of GDP.

In the documents supporting the proposal for the Economic and Social Plan of the State Budget (PESOE) for 2024, to which Lusa had access today, the government assumes the "objective of maintaining the pace of fiscal consolidation and improving the parameters of public debt sustainability in the medium term".

"PESOE 2024 maintains the restrictive course of budgetary policy - a reduction in the level of total expenditure as a percentage of GDP [Gross Domestic Product] of around 0.5 percentage points.

Improving fiscal sustainability in the medium term will create the conditions to safeguard macroeconomic stability and gradual growth," reads the document quoted by Lusa, which will be discussed and then voted on at the 8th ordinary parliamentary session, which takes place in Maputo from October 19 to December 21.

According to the proposed budget for next year, Mozambique will have a budget deficit of 159,488.5 million meticais, corresponding to 10.4% of GDP.

Also according to the source, the government estimates that it will collect 383,537.5 million meticais next year, corresponding to 25 of the estimated GDP for 2024, while expenditure will have a weight of 35.2% of GDP: 8,028 million meticais. (Lusa)