The government expects to collect, between 2025 and 2027, an average annual revenue of around US$70 million (4.9 billion meticals) from the exploration of liquefied natural gas in the Rovuma basin, through the Coral Sul Project, operated by Italy’s ENI.
This amount represents approximately half of the total revenue that the state has already received since the start of natural gas exports from Rovuma in late 2020.
To date, the government has collected US$158.9 million (10.5 billion meticals) from taxes on mining production, crude oil and production bonuses. This amount is deposited in the Sovereign Fund’s Transitional Account, awaiting transfer of 40% to the Sovereign Fund’s Single Account and 60% to the State Budget.
According to the draft Economic and Social Plan and State Budget (PESOE) for 2025, to be debated in the coming days by the Assembly of the Republic, these revenues will be part of the 84.4% of domestic resources that the Government intends to mobilise annually between 2025 and 2027, as part of its strategy to correct the budget deficit.
During this period, the Executive estimates that it will mobilise an annual average of around 543.1 billion meticals, corresponding to 32% of Gross Domestic Product (GDP). Of this total, 458.4 billion meticals should come from internal sources and 84.7 billion from external sources.
The Fiscal Policy planned for 2025-2027 will focus on fiscal consolidation, with the aim of strengthening revenue collection, improving debt sustainability and promoting greater efficiency in public spending. Among the targets set by the Government are a reduction in public expenditure from 33.2% of GDP in 2024 to 30.7% in 2027; a reduction in the wage bill to 11.5% of GDP; and the achievement of a domestic primary surplus of 2.0% of GDP.
For the 2025 financial year, the Government projects growth in total state revenues, which should rise from 351.3 billion meticals in 2024 to 385.9 billion in 2025. Current revenues, in turn, are expected to rise from 328.6 billion to 361 billion meticals.
Domestic credit is expected to fall from 39 billion meticals in 2024 to 35.1 billion in 2025, with a projected increase to 43.4 billion in 2026, before falling to 18.4 billion in 2027. External credit is expected to rise from 18.6 billion meticals to 30 billion next year.
Operating expenditure is expected to fall slightly, from 362 billion meticals in 2024 to 351.3 billion in 2025. Investment expenditure is expected to rise from 96.4 billion to 98.8 billion meticals over the same period.
Finally, the Government reaffirms its commitment to policies to stimulate the economy, focused on strategic investments in agriculture, mining, tourism, industry and services, aiming at sustained economic growth based on domestic resources, in particular natural gas.
Source: Carta de Moçambique
