Carregamento de gas natural na bacia do Rovuma, província de Cabo Delgado em Moçambique, do empreendimento Coral Sul
Maputo, 28 May (AIM) – The Mozambican government has decided to add 3.6 billion meticais (56.1 million US dollars at the current exchange rate) to the 2026 State Budget, which means that the Economic and Social Plan and State Budget (PESOE) rises from 442.9 billion to 446.5 billion meticais, corresponding to 27.3 percent of Gross Domestic Product (GDP).
According to the government spokesperson and Minister of State Administration, Inocêncio Impissa, speaking to reporters after a meeting of the Council of Ministers (cabinet), the additional funds come from gas revenues and it is aimed at ensuring the sustainability of public finances.
“The amendment aims to strengthen allocations for domestic public investment, contributing to the mitigation of fiscal impacts arising from natural disasters and external shocks, as well as ensuring the sustainability of public finances”, the spokesperson said.
The proposal amends articles of the PESOE law for 2026, which had been approved last December. The new revision will be submitted to the Assembly of the Republic, the country’s parliament.
“This revision is also aimed at increasing internal resources resulting from the inclusion of carried-over balances from oil and gas revenues, amounting to 3,574.6 million meticais. At the same time, it adjusts public expenditure as a result of the increase in the domestic investment component”, he said.
The spokesperson also explained that the amount will be channeled to respond to priority actions included in the recovery and reconstruction plan in response to damage caused by mass demonstrations against the allegedly fraudulent results of the 2024 general elections. The demonstrations then degenerated into rioting.
“This amount will also be channeled for the construction and rehabilitation of infrastructures affected by recent floods, ensuring a swift and effective response.
Following the revision of the 2026 PESOE, the public expenditure will also increase, from 520.6 billion meticais to 524.2 billion meticais, which corresponds to 32.1 percent of GDP.
However, the government, through the General State Account (CGE), had also announced that, over the last year, the State revenue from Large-Scale Projects in the sectors of mining, hydrocarbons and metallurgy fell to 11.7 billion meticais, which corresponds to 40.50 percent.
The decline was driven by heavy losses recorded by Mozal aluminium smelter, by the Indian company Vulcan, which owns an enormous open cast coal mine in Moatize district, and Rovuboè mining. These companies together recorded losses of 49.6 billion meticais.
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