Mozambique: Government approves Budget and Plan for 2023 – AIM report

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Mozambique: Government approves Budget and Plan for 2023 – AIM report

12:51 CAT | 07 Oct 2022

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

Mozambique’s Council of Ministers, the Cabinet, on Wednesday approved the State Budget, Economic and Social Plan for 2023, which sets public spending and defines the country’s annual macroeconomic targets.

Speaking shortly after Wednesday’s meeting the government spokesperson Deputy Justice Minister Filimão Suaze announced that public spending for 2023 was set at 472,122.4 million meticais (one dollar is equivalent to 63 meticais, at the exchange rate of the day).

READ: Mozambique: Government projects 5% growth in 2023

Suaze also said that of the total public expenditure, 357,063.9 million meticais are from State revenues, 36,648.0 million meticais from internal funding and 78,410.6 million meticais from external funding.

He explained that annual macro-economic targets aimed to “achieve a GDP [Gross Domestic Product] growth of five percent and keep the average annual inflation rate at 11.5 percent.

As for exports of goods the government set a target of 8,806 million US dollars million in exports of goods, the targets should, according to Suaze, set up Net International Reserves of 2,936.6 million US dollars, which would cover three months of imports of goods and services.

it is worth mentioning that these figures show a sharp increase of Mozambique’s exports, from 5.2 billion US dollars projected for 2022 up to 8.8 billion in 2023, a 69.2 growth. This growth may be accounted for by the revenues from exports of natural gas from the Rovuma basin, in the northern province of Cabo Delgado.

Soon, the government is due to submit the Budget to the Mozambican parliament, sitting on its 6th ordinary session which began on Thursday (06).

Source: AIM