At issue is the decree of June 27, approved by the Council of Ministers, which, regarding the “execution of public expenditure,” establishes that “budget limits” have been approved for each unit and that expenditure execution “must be carried out in strict compliance with the approved limits,” as well as with “measures for rationalizing public spending, public procurement plans, and treasury plans.”
The government has decided to freeze up to 25% of several budget allocations for this year, according to the execution rules of the 2025 Economic and Social Plan and State Budget (PESOE).
The decree also establishes a “mandatory freeze corresponding to the withholding of a portion of the allocations defined in the Law that approves the PESOE 2025.” Specifically, 20% of “budget allocations for Operating Expenditures for transfers to families” will be frozen, as well as 20% of “budget allocations for operating expenditures related to salaries and wages, expenditures on goods and services, and other current and capital expenditures.”
It further states that 25% of the budget allocations for “other personnel expenses and the domestic component of investment expenditures” will also be frozen.
President Daniel Chapo enacted and ordered the publication of the 2025 State Budget on May 19, after more than five months of operating under a provisional twelfths regime following the general elections held on October 9.
Mozambican Members of Parliament from FRELIMO and PODEMOS definitively approved the PESOE 2025 draft law on May 10, totaling 512.749 million meticais (7.107 billion euros).
According to Lusa, the PESOE was approved with 193 votes in favor from the Mozambique Liberation Front (FRELIMO) and the Optimistic People for the Development of Mozambique (PODEMOS), and with 23 votes against from the Mozambican National Resistance (RENAMO) and the Democratic Movement of Mozambique (MDM).
Source: Forbes África Lusófona
