Mozambique: Assets worth over €60 million seized in 2024
File photo: Domingo
The Mozambican government has decided to retain up to 25% of various budgeted allocations for this year, according to the implementation rules of the 2025 Economic and Social Plan and State Budget (PESOE), analysed by Lusa this Monday.
At issue is the decree of June 27, approved by the Council of Ministers, which, regarding the “realization of public expenditure,” defines that “budgetary limits were approved” for each unit and that expenditure execution “must be carried out in strict compliance with the approved limits,” as well as “public expenditure rationalization measures, public procurement plans, and treasury plans.”
It also establishes the “mandatory retention corresponding to the retention of a portion of the allocations defined in the Law approving PESOE 2025”, specifically setting aside 20% of the budget allocations for Operating Expenses for transfers to families, and the same percentage for “budget allocations for operating expenses for salaries and wages, expenses for goods and services, and other current and capital expenditures.”
It also establishes that 25% of the budget allocations for “other personnel expenses and the internal component of investment expenditures” are to be set aside.
Following the general elections of October 9, 2024, Mozambican president Daniel Chapo signed and published the 2025 State Budget on May 19, already more than five months into a twelfth-month budget.
Frelimo and Podemos deputies definitively approved the 512.749 million meticais (€7.107 million) PESOE 2025 bill on May 10.
The PESOE bill was approved with 193 votes in favour from the Mozambique Liberation Front (Frelimo) and the Optimistic People for the Development of Mozambique (Podemos), and 23 votes against from the Mozambican National Resistance (Renamo) and the Democratic Movement of Mozambique (MDM).
In the document, the government forecasts gross domestic product (GDP) growth of 2.9% for 2025 (1.9% in 2024), an average annual inflation rate of 7%, exports of goods worth US$8.431 billion (approximately €7.379 billion), and Gross International Reserves of US$3.442 billion (approximately €3.045 billion), equivalent to 4.7 months of import coverage for goods and services, excluding megaprojects.
Government revenue for the full year is expected to amount to more than 385.871 billion meticais (€5.347 billion), equivalent to 25% of GDP, and total expenditures to 512.749 billion meticais (€7.107 billion), corresponding to 33.2% of GDP, generating a budget deficit of 8.2%.
The document guides interventions in two “complementary strategic domains”: the economic sector – including the agricultural, industrial, tourism, mineral resources, hydrocarbons and energy sectors, and employment – and the social sector, which includes education, health, water supply, housing and social protection.
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