Africa-Press – Mozambique. The Mozambican government yesterday approved the draft law for the Economic and Social Plan and State Budget (PESOE) for 2025, with a deficit of 126.8 billion meticais (€1.7 billion).
“PESOE defines the main economic and social objectives and the financial policy of the state, identifies the forecast of revenues to be collected, and the actions and resources necessary for their implementation,” Council of Ministers spokesperson Inocêncio Impissa announced after a meeting of the body in Maputo.
According to te Cabinet meeting spokesperson, in total, the PESOE – which must still be submitted to parliament – is budgeted at 512.7 billion meticais (€7 billion).
Annual inflation at 7%
Among the main macroeconomic assumptions underlying the 2025 PESOE are a GDP growth of 2.9%, average annual inflation of around 7%, and revenues of 385.8 billion meticais (€5.3 billion).
“The government is doing the best it can. […] On Monday, the president was still saying that it was possible to make omelettes without eggs in these first 100 days,” said Impissa, referring to the fact that the government, which took office in January, is still using budgets extended from 2024.
In this Tuesday’s session, the Mozambican government also considered the General State Account for the 2024 financial year, highlighting an increase in the public debt stock to 1.1 billion meticais (€15 billion euros), the equivalent to 76.9% of GDP.
“It can be seen that in 2024, the guaranteed public debt stock increased by 75.5 billion meticais (just over €1 billion),” he said.
Revenue collected by the Mozambican state in 2024 fell below the target, amounting to around 344.8 billion meticais (€5.1 billion), but expenditure was also below budget.
According to government figures released in January, revenue collection by the state amounted to 89.9% of the target, while in 2023 it had reached 91.8% of the objectives for that year.
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