The Mozambican Government’s budget proposal, published in the Boletim da República (Official Gazette), reveals that 65 municipalities will receive a total of 9.6 billion meticais (USD 148.6 million) in transfers from the State Budget (OE) this year.
According to the 2025 Economic and Social Plan and State Budget (PESOE) law, approved in May by Parliament, these current and capital transfers represent an increase compared to the more than 9.3 billion meticais (USD 144.2 million) forecast in last year’s budget.
“Current transfers to municipalities are set at 2% of estimated tax revenue, and for this year include almost 6.3 billion meticais from the Municipal Compensation Fund, along with 46.2 million meticais from the Special Gaming Tax and 5.2 million meticais from the Casino Stamp Duty,” the document explains, as quoted by Lusa news agency.
Capital transfers, in turn, are set at 1% of tax revenue, amounting to more than 3.2 billion meticais this year.
In terms of specific allocations:
- Maputo, the capital city, will receive 549.1 million meticais in current revenues.
- Matola will receive 89.1 million meticais.
The 2025 PESOE estimates GDP growth of 2.9% and an average annual inflation rate of around 7%. Revenue projections for the year are 385.8 billion meticais (USD 5.9 billion).
For 2025, the State expects to spend a total of 205.5 billion meticais (USD 3.1 billion) on wages and salaries, an increase of over 1.3% compared to the 202.8 billion meticais registered in 2024.
The public accounts deficit for 2025 is projected at 126.8 billion meticais (USD 1.9 billion), lower than the 155.8 billion meticais (USD 2.4 billion) recorded in 2024 and the 145.5 billion meticais (USD 2.2 billion) in 2023.
Source: Diário Económico
