The first Economic and Social Plan and State Budget (PESOE) of Daniel Chapo’s government marks a turning point in the direction of public finances, introducing substantial cuts in defence spending. After seven years of successive increases — driven largely by the response to terrorism in Cabo Delgado — the Mozambican government plans to reduce the budget allocated to the Mozambican Armed Defence Forces (FADM) by around US$170 million (11 billion meticals).
According to the budget proposal for 2025, already approved by the Council of Ministers and soon to be discussed in the Assembly of the Republic, the defence budget will fall from 31.7 billion meticals (495 million dollars) in 2024 to 20.7 billion meticals (323 million dollars) in 2025.
This will be the lowest amount allocated to the military sector since 2019, when spending was around 12.6 billion meticals, at the time around 197 million dollars.
Between 2020 and 2024, defence spending grew steadily. In 2020, it amounted to 21.2 billion metical (331 million dollars); in 2021, to 21.8 billion (US$341 million); in 2022, they rose to 26.6 billion (US$416 million); and in 2023, they stood at 25.8 billion meticals (US$403 million).
In education, the budget falls from 82.3 billion to 72.9 billion meticals
The cuts also affect the security and public order sector, whose allocation is expected to fall from 53.7 billion meticals (839 million dollars) in 2024 to 47.8 billion (747 million dollars) in 2025. In 2023, this sector recorded a historic high, with a budget execution of 54.4 billion meticals (850 million dollars), including expenditure on the police and intelligence services.
PESOE 2025 also includes significant reductions in essential social areas. In education, the budget falls from 82.3 billion to 72.9 billion metical (1.2 billion to 1.1 billion dollars); in health, from 48.7 billion to 39.5 billion (from 761 to 617 million dollars); Environmental Protection, from 4.9 billion to 3.6 billion (from 76 to 56 million dollars); and Economic Affairs, from 86.5 billion to 46.8 billion meticals (from 1.3 billion to 731 million dollars).
On the other hand, some items show significant increases. General Public Services rise from 182.7 billion to 243.9 billion meticals (2.8 billion to 3.8 billion dollars); Housing and Community Development rose from 10.8 billion to 15.5 billion (168 to 242 million dollars); and Security and Social Action increased from 3.7 billion to 19.4 billion meticals (58 to 303 million dollars).
This budget rebalancing reveals a clear shift in priorities on the part of the Executive, which is now seeking to strengthen spending on the State’s administrative and social functions, while imposing restraint on traditionally robust sectors such as Defence. The PESOE 2025 proposal thus points to a new cycle of governance focused on fiscal consolidation and the strategic redistribution of public resources.
Source: Carta de Moçambique
