Mozambican Local Authorities Get 3.2% More Transfers

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Mozambican Local Authorities Get 3.2% More Transfers
Mozambican Local Authorities Get 3.2% More Transfers

Africa-Press – Cape verde. The 65 Mozambican municipalities will receive an additional 3.2% of revenue from the State Budget in 2025, amounting to almost 9.659 billion meticais (132 million euros), according to official data consulted by Lusa.

According to the Economic and Social Plan and State Budget (PESOE) law for 2025, approved on May 10 in parliament and recently published in the Official Gazette, these transfers to local authorities, current and capital, contrast with the more than 9,363 million meticais (128 million euros) foreseen in last year’s Budget.

Current transfers to local authorities are set at 2% of estimated tax revenue, which includes, this year, almost 6,385 million meticais (87.3 million euros) from the Municipal Compensation Fund, and allocations of 46.2 million meticais (631 thousand euros) from the Special Tax on Gaming and 5.2 million meticais (71 thousand euros) from the Stamp Duty on Casinos.

Capital transfers to local authorities are set at 1% of tax revenue, with their distribution this year set at just over 3,222 million meticais (44 million euros).

The municipality of the city of Maputo, the country’s capital, will receive 549.1 million meticais (7.5 million euros) in current revenue this year, and that of the city of Matola, Maputo province, the most populous in the country, 689.1 million meticais (9.4 million euros), according to the 2025 PESOE maps.

In the budget document, the Mozambican Government forecasts GDP growth of 2.9% for 2025, an average annual inflation rate of 7%, exports of goods worth US$8,431 million (€7,379 million) and Gross International Reserves of US$3,442 million (€3,045 million), equivalent to 4.7 months of coverage of imports of goods and services, excluding megaprojects.

State revenue for the entire year is expected to amount to more than 385,871 million meticais (5,347 million euros), equivalent to 25% of GDP, and total expenditure to 512,749 million meticais (7,107 million euros), corresponding to 33.2% of GDP, generating a budget deficit of 8.2%.

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