Mozambique Raises State Spending as IMF Loan Remains Uncertain

- Budget amendments come amid a severe public liquidity crisis

- Without a new IMF programme, the government will rely on gas revenues from Cabo Delgado

By MOZTIMES

Maputo (MOZTIMES) – The Mozambican government on Tuesday approved a proposal to amend the 2026 Economic and Social Plan and State Budget Law in order to increase public spending by 3.57 billion meticais (about 600,000 US dollars, at the current exchange rate), above the amount approved last year.

With liquidity shortages persisting and approval of a new International Monetary Fund (IMF) programme still pending, concerns are growing that part of the amended budget could end up being used to finance recurrent state expenditures, including wages.

Subscribe to read the full article