Mozambique’s public spending fell 4.7% by September, totaling 246.7 billion meticais ($3.9 billion). This decrease was mainly due to delays in salary payments, which were only processed in October, affecting budget execution.
According to data from the Ministry of Finance, state operating expenses between January and September accounted for 70.2% of the total budgeted for 2025. This figure highlights the pressure on resource management and the rigidity of public accounts.
During the same period, the government spent 149.9 billion meticais ($2.4 billion) on public sector salaries and wages, representing 74.1% of the total planned for this category in 2025. The Ministry explained that the reduction was due to the payment of 7 billion meticais ($111.2 million) related to September salaries, which were carried over and paid only in October. With this adjustment, the total amount spent on salaries and wages rose to 157 billion meticais ($2.5 billion).
In addition, the salary category includes 6.888 billion meticais ($107.7 million) corresponding to the 13th salary for 2024, which will be paid after February 2025, according to the Ministry of Finance. The institution had already warned, in October, of pressure on salaries and public debt due to weak domestic revenue mobilization. The fiscal risk monitoring report indicates that public expenditure “has faced adverse dynamics in the recent period, reflecting structural rigidity and pressure on the State Budget.”
The report adds that, in the short term, pressure on government spending will remain high due to the relaxation of budget and development support programs by international partners, which calls for greater fiscal discipline and rigor.
The government estimates a fiscal deficit above 6% of GDP in 2026, with priorities focused on controlling the wage bill and stabilizing debt servicing costs. The Secretary of State for Treasury and Budget, Amílcar Tivane, explained:
“This consolidation effort must not overlook the need to create conditions for investment, allowing the economy to continue growing.”
Source: Lusa
