The government decided today to suspend the contracting of domestic debt, since the analysis of the Economic and Social Plan and the State Budget indicates that the projections for this year have been exhausted.

"Domestic debt in the period under review stands at 99.8% of the annual forecast, so there is no room for further contracting of domestic debt," said the spokesman for the Council of Ministers, Filimão Suaze, after the 28th Session of the Council of Ministers.

Asked what mechanisms the government will put in place to meet the nation's needs, particularly given that this is an election year, he pointed to the "usual ways in which the state has financed itself", namely improving revenue collection mechanisms, "or others".

"The solutions will necessarily have to come from other sources of funding. It's clear that, if we're already at 99%, there's no more room for contracting more debt, so the state will have to resort to other forms of self-financing for these purposes," he suggested.

In May of this year, the Monetary Policy Committee of the Bank of Mozambique revealed the worsening domestic public debt which already stood at 302.8 billion meticais - 27.7 billion meticais more than in 2022. The Central Bank's analysis excluded loan and lease contracts and overdue liabilities.

The analysis of the PESOE reveals that this year's expenditure by the state was 195,646.8 million meticais, corresponding to 41.4% of the annual plan; the state collected 146,797.6 million meticais in revenue (41.1%); and of the 117 indicators, 73.5% had a positive performance and 26.5% had a negative performance.

"Despite adverse factors, there has been internal macroeconomic stability," said the spokesman.

Although it was not analyzed during the session, the Executive does not foresee the possibility of proceeding with an amending budget. "There's nothing to suggest that we're going to do that. Let's see what the next few moments say," he explained.

The PESOE 2023 balance sheet will be submitted to Parliament for approval.