The Assembly of the Republic approved on Thursday (4) in general the proposal for the Economic and Social Plan and State Budget (PESOE) for 2026, with favorable votes from the majority bench of Frelimo and the unanimous rejection of the three opposition benches.
According to Lusa, the proposal was passed with 156 votes from Frelimo and 65 votes against from the Democratic Movement of Mozambique (MDM), the Mozambican National Resistance (Renamo), and Podemos (Optimistic People for Mozambique’s Development).
At the heart of the parliamentary debate was the government’s decision to revise downward its revenue forecast for the coming year, cutting €157 million compared to the budget initially submitted in October. This cut will require a proportional adjustment to public spending, including the suspension of investments considered non-priority. The Frelimo bench defended PESOE 2026 as a guiding instrument for public policies aimed at inclusive development. “This plan reflects the government’s firm commitment to the Mozambican people, based on well-oriented public policies, good governance, and responsible management,” said MP Romário Alves.
However, the proposal was sharply criticized by the opposition benches, which argued that the budget deepens the social crisis and neglects key sectors such as agriculture, health, and education. MDM MP Judite Macuaua justified her vote against by saying the plan “sacrifices the investment component, compromising the structural transformation of the economy.” The bench also expressed concern over the exclusion of the rehabilitation of National Road Number One (N1), the country’s main highway.
Meanwhile, Renamo’s Raul Dique denounced the absence of a concrete strategy to finance agriculture and criticized the lack of responses to fight the expanding terrorism in the northern area of the country, particularly in Nampula. “There are no mechanisms to fight widespread corruption, nor inclusion of agricultural projects in the national public investment portfolio,” he stated.
Podemos MP Elísio Muaquina accused the government of “feeding the state machine” with a budget that, in his view, neglects human life and social sectors. “Decentralization is not materializing, municipalities remain without resources, and there is no transparency about public debt,” he said.
The revised PESOE 2026 proposal projects state revenue of €4.3 billion, corresponding to 24.9% of GDP, and total expenditure of €5.5 billion, equivalent to 31.8% of GDP. The budget deficit is expected to remain at €1.2 billion, equivalent to 7% of GDP.
Regarding economic growth, the government revised downward the 2025 forecast, now estimating GDP growth of 1.6%, compared with the 2.9% previously projected. For 2026, the proposal forecasts a recovery to 2.8%, supported by the dynamism of the agricultural sector, the resumption of Liquefied Natural Gas (LNG) exports, and investments in energy and services.
Source: Diário Económico
