After a week of evaluation by the committees of the Assembly of the Republic, the bill regarding the 2025 Economic and Social Plan and State Budget (PESOE) will begin today, Thursday, May 8, to be debated in a plenary session in Parliament, with approval guaranteed by Frelimo, the ruling party since independence.
The PESOE is a document that defines the main economic, social, and financial policy objectives of the State, also outlining the forecasted revenues, actions, and resources required for its implementation.
The budget proposal also has the central goal of laying the foundations for the country’s economic independence in the medium and long term, through measures aimed at promoting the diversification of economic growth sources and increasing resilience to cyclical shocks, as well as job creation, modernization of infrastructure, efficient management of natural resources, and improving income distribution standards.
Recently approved by the Government, in another session of the Council of Ministers, the bill for the 2025 Economic and Social Plan and State Budget is estimated at 512.7 billion meticals (7.9 billion dollars).
Among the main macroeconomic assumptions underlying the 2025 PESOE is a 2.9% growth in Gross Domestic Product and an annual average inflation rate of around 7%. The outlook also anticipates revenues amounting to 385.8 billion meticals (5.9 billion dollars).
According to a statement cited by Lusa, the document being analyzed by lawmakers guides interventions in two complementary strategic areas: the economic sector, which covers agriculture, industry, tourism, mineral resources, hydrocarbons, energy, and employment; and the social sector, which addresses education, health, water supply, housing, and social protection.
“For 2025, decisions regarding resource allocation will focus on investment in social, production, and logistics infrastructure, specifically for transportation, digitalization, roads and bridges, railways, and ports, productive sectors, and human capital development.”
The PESOE highlights that, at the national level, economic activity has been affected by a range of shocks, including the increasing frequency and intensity of extreme weather events, terrorism affecting some districts in Cabo Delgado province, and post-electoral tensions.
On the international front, it points out that uncertainties persist related to geopolitical tensions, the worsening of barriers to free trade, and the volatility of financial markets.
For the current year, projections show that the State plans to spend a total of 205.5 billion meticals (3.1 billion dollars) on salaries and remunerations, an increase of more than 1.3% compared to the 202.8 billion meticals recorded in 2024.
The public budget deficit for 2025 is estimated at 126.8 billion meticals (1.9 billion dollars), a lower amount than the 155.8 billion meticals (2.4 billion dollars) recorded in 2024 and the 145.5 billion meticals (2.2 billion dollars) in 2023.
Meanwhile, to cope with this, the government plans to issue domestic debt throughout the year amounting to 35 billion meticals (542.9 million dollars), compared to the 38.9 billion meticals (603.4 million dollars) issued in 2024.
