Africa-Press – Mozambique. Mozambique’s public spending shrank by 4.7% up to September, to 246.7 billion meticais (€3.35 billion), a decrease explained by salaries paid in October.
According to data from the Ministry of Finance on budget execution, the State’s operating expenditure from January to September accounted for 70.2% of the total budgeted for 2025.
Regarding salaries and public sector remuneration, the State spent 149.9 billion meticais (€2.04 billion) over nine months, equivalent to 74.1% of the total planned for this category in 2025.
However, the Ministry of Finance warns that the decrease is due to the payment of 7.11 billion meticais (€96.5 million) in salaries for September, “which were carried over and paid in October”, so the actual value of salaries and remuneration is 157 billion meticais (€2.13 billion).
“It should also be noted that in the salaries and remuneration category there are 6.8882 billion meticais (€93.5 million) referring to the payment of the 13th salary [for 2024, paid after February 2025],” it adds.
The Ministry of Finance had already warned in October about the pressure from increases in salaries and public debt, given the weak mobilisation of domestic revenues.
In its most recent fiscal risk monitoring report, the ministry states that public spending “has experienced adverse dynamics in the recent period, reflecting structural rigidity and pressures on the State Budget”.
The report also acknowledges that in the “short term, pressure on State expenditure is expected to remain high”, with “impacts resulting from the relaxation of various support programmes to the State Budget and development by international partners”.
“This situation imposes additional challenges on fiscal sustainability, requiring greater rigour in the management of public accounts, in setting budgetary priorities and strengthening fiscal discipline,” it says.
The Mozambican Government estimates a fiscal deficit above 6% of GDP in 2026, identifying “payroll control” and “stabilisation of the State’s debt service” as priorities.
“Ensuring balance between the importance of consolidating public accounts to stabilise debt indicators, freeing budget space to meet productive investment needs. But this consolidation effort must also not neglect the need to create conditions in terms of resource allocation for investment to allow the economy to continue growing,” said Amílcar Tivane, Secretary of State for Treasury and Budget, on 26 September.
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