Africa-Press – Mozambique. Mozambique’s 65 municipalities will receive 3.2% more revenue from the State Budget in 2025, amounting to almost 9.659 billion meticais (€132 million), according to official data.
According to the Economic and Social Plan and State Budget (PESOE) law for 2025, approved by parliament on May 10 and recently published in the Official Gazette, these transfers to municipalities, current and capital transfers, contrast with the 9.363 billion meticais (€128 million) foreseen in last year’s budget.
Current transfers to local authorities are set at 2% of estimated tax revenue, which includes almost 6,385 million meticais (€87.3 million) from the Municipal Compensation Fund this year, plus allocations of 46.2 million meticais (€631,000) from the Special Tax on Gaming and 5.2 million meticais (€71,000) from the Stamp Duty on Casinos.
Capital transfers to local authorities are set at 1% of tax revenue, and their distribution this year is set at just over 3,222 million meticais (€44 million).
The municipality of the city of Maputo, the country’s capital, will receive 549.1 million meticais (€7.5 million) in current revenue this year, and that of the city of Matola, in the province of Maputo, the most populous in the country, 689.1 million meticais (€9.4 million), according to the 2025 PESOE maps.
GDP grows 2.9%
In the budget document, the Mozambican government forecasts for 2025 a growth in the gross domestic product (GDP) of 2.9%, average annual inflation rate of 7%, exports of goods worth US$8,431 million (€7,379 million) and gross international [currency] 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 whole year is expected to amount to more than 385,871 million meticais (€5,347 million), equivalent to 25% of GDP, with total expenditure to 512,749 million meticais (€7,107 million), corresponding to 33.2% of GDP, generating a budget deficit of 8.2%.
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