Mozambique: Parliament approves plan and budget

Login

Register

http://www.clubofmozambique.com/

Mozambique: Parliament approves plan and budget

7:49 CAT | 12 May 2025

FILE - For illustration purposes only. [File photo: Notícias]

The Mozambican parliament, the Assembly of the Republic, on Saturday approved the government’s plan and budget for this year (PESOE 2025).

The ruling Frelimo Party and the largest opposition party, Podemos (Optimistic Party for the development of Mozambique), both voted in favour of the plan and budget. The other two opposition parties represented in the Assembly, the National Resistance of Mozambique ( Renamo), and the Mozambique Democratic Movement (MDM) voted against.

During the second and final day of debate on PESOE-2025, Prime Minister Benvinda Levy said the government proposal was the possible plan, and not the ideal one. Frelimo deputies supported the government obediently, claiming that the plan created the conditions required for the government to do its job properly

They claim that the plan reflected Mozambican reality, while Renamo and MDM deputies declared that the plan was not at all realistic. The Podemos parliamentary group admitted that the plan and budget had gaps, but said it voted in favour because it was “a responsible party”.

PESOE-2025 envisages an economic growth rate this year of 2.9 per cent. The economy will largely depend on mining. The government expects the extractive industry to grow by 5.4 per cent, construction by three per cent, agriculture, livestock and forestry by three per cent, and transport and communications by 2.6 per cent.

Other key targets include an annual inflation rate of seven per cent or less, exports of goods and services of 8.4 billion US dollars, and a flow of 5.1 billion dollars in foreign direct investment. Net international reserves should cover 4.7 months of imports of non-factor goods and services, excluding the megaprojects.

As for the budget, PESOE 2025 will require public expenditure of 513 billion meticais (about eight billion dollars, at the current exchange rate). State revenue, however, is only expected to reach 386 billion meticais. That leaves a deficit of 127 billion meticais, to be covered by foreign and domestic loans and grants.

Source: AIM