03/03/2024

Budget Proposal for 2024 Presents a Deficit of Approximately 152 Million Mozambican Meticais

A group of people sitting at a table discussing the 2024 Budget Proposal with laptops.

A group of people sitting at a table discussing the 2024 Budget Proposal with laptops.

The budget proposal for the fiscal year 2024 of the General State Budget reveals a significant budget deficit, estimated at around 152 million meticais. The President of the Planning and Budget Commission, António Niquice, expressed concerns about the implications of this deficit during a Workshop for Socialization and Analysis of the Proposal for the Economic and Social Plan and State Budget (PESOE) – 2024, held in the province of Maputo.

A man in a pink shirt giving a Budget Proposal at a podium for the year 2024.
A man in a pink shirt giving a Budget Proposal at a podium for the year 2024.

Niquice emphasized that this deficit represents a considerable gap in the resources available for the country’s priority activities. He warned of possible negative impacts on responses to climatic events and the execution of public expenditure.

Despite these challenges, the budget proposal highlights the continued commitment to social areas, with over 50% of the budget allocated to Education, Health, and Infrastructure. However, Niquice pointed out an additional concern related to the uneven distribution of the budget, highlighting an inverted pyramid. He noted that operational expenses are disproportionately high compared to investments, a phenomenon that challenges the regional pattern.

In a temporal comparison, Niquice mentioned that in 2022, the general state budget was approximately 456 billion meticais, with a deficit of around 150 billion meticais. In 2023, despite the continued growth of public expenditure, the deficit decreased to about 115 billion meticais, showing an increase of over 35 billion compared to the current proposal.

The analysis of these numbers reflects the economic challenges faced by Mozambique, highlighting the need for strategic approaches to address the budget deficit and optimize the allocation of resources in different areas of the budget.

visao
Author: visao

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