Mozambique: Diversification of sources of funding for State Budget, debt consolidation take centre stage in newly approved fiscal scenario

Login

Register

http://www.clubofmozambique.com/

Mozambique: Diversification of sources of funding for State Budget, debt consolidation take centre stage in newly approved fiscal scenario

8:09 CAT | 13 Jun 2024

FILE - For illustration purposes only. [File photo: RM]

The Council of Ministers of Mozambique on Tuesday (11-06) approved a fiscal scenario for the period 2025-2027 which provides for the diversification of sources of financing for the State Budget and the stabilisation of public debt, the spokesperson for this Tuesday’s cabinet session said.

“It is a guiding instrument for fiscal policy aimed at the materialisation of the government’s Five-Year Program and, in this context, it provides for the diversification of financing sources and the consolidation and optimization of public expenditure,” Ludovina Bernardo told a press conference following the Council of Ministers’ weekly session.

The 2025-2027 fiscal scenario points to greater control of fiscal risks and the promotion of economic growth, aiming to stabilise domestic debt, he added.

According to the Economic Situation and Inflation Perspectives report released by the central bank in May, internal public debt issued by Mozambique reached 364,251 million meticais (€5,250 million), after growing by the equivalent of almost €750 million in the space of five months.

Internal public debt contracted between December 2023 and May 2024, excluding that resulting from loan contracts, lease contracts and outstanding liabilities, “increased by around 51,910 million meticais” (€748 million) to the end May, Lusa previously reported.

Source: Lusa