The government forecasts the need for 293.6 billion meticals (4.6 billion dollars) to cover the budget deficit over the next four years, according to the Medium Term Fiscal Scenario (CFMP) until 2027. This document, approved by the Council of Ministers, presents financial projections and detailed strategies for reducing the deficit, according to information from Lusa.
The CFMP indicates that the budget deficit should fall significantly, from 7.6 per cent of GDP in 2023 to 5.0 per cent in 2024, with a progressive reduction until it reaches 0.9 per cent of GDP in 2027. For 2024, the government estimates deficit financing of 76.4 billion meticals (1.21 billion dollars), rising to 83.4 billion meticals (1.32 billion dollars) in 2025. In 2026, the need will be 72.1 billion meticals (1.14 billion dollars), falling to 61.6 billion meticals (973.7 million dollars) in 2027.
“By prioritising external credits, the government seeks to access financial resources with competitive interest rates, extended terms and other favourable conditions, reducing pressure on domestic debt and strengthening the country’s fiscal position,” the document states.
The CFMP also emphasises that this strategic approach reflects the government’s commitment to promoting prudent management of public finances, ensuring fiscal sustainability and encouraging sustainable economic growth. “The plan was developed with the aim of translating the strategic development objectives into realistic and sustainable financial projections, providing a solid basis for decision-making and the efficient allocation of resources,” the document mentions.
The document also projects gains of 8.6 billion meticals (137.3 million dollars) in 2025 through fiscal measures, with an increase to 16.7 billion meticals (264.6 million dollars) in 2026 and 21.6 billion meticals (341.7 million dollars) in 2027.
“By projecting public income and expenditure for the next three years, we can identify financial challenges and investment opportunities that will help guide effective policies and the efficient allocation of resources,” concludes the CFMP.
