The Assembly of the Republic will meet tomorrow, Saturday, 24 October, for its Second Extraordinary Plenary Session, with the aim of discussing the proposed revision of the 2026 Economic and Social Plan and State Budget (PESOE). The plenary meeting was convened by the Permanent Commission of the Assembly of the Republic on 1 October, at the Government’s request.
Specifically, MPs will review Articles 2 and 4 of Law No. 12/2025 of 29 December, which approves the 2026 PESOE. The proposed revision law was approved by the Government last May. At the time, the Government justified the decision by citing the need to increase the financial allocation for domestic public investment, helping to mitigate the fiscal impacts of natural disasters and external shocks, as well as ensuring the sustainability of public accounts.
At the time, Government spokesperson Inocêncio Impissa said it was “an amount strategically channelled towards financing the priority actions described in the Recovery and Reconstruction Plan, as a consequence of the destruction caused by the post-election demonstrations of 2024 and 2025 and the construction and implementation of post-flood infrastructure”.
As a result of the increase in the domestic investment component, the Government says it adjusted public expenditure, with domestic resources rising from 442.9 billion meticais, as provided for in Law No. 13/2025 of 29 December, to 446.5 billion meticais, equivalent to 27.3% of gross domestic product (GDP).
Following the changes, public expenditure increases from 520.6 billion meticais to 524.2 billion meticais, equivalent to 32.1% of GDP. The proposed revision of the 2026 PESOE will be submitted to the Assembly of the Republic, which is expected, in principle, to debate and approve the document at an Extraordinary Session, given that the Fourth Ordinary Session begins next October.
According to Impissa, the additional funding comes from oil and gas revenues from the Rovuma Basin, amounting to 3.5 billion meticais, relating to the final days of December 2025. It should be recalled that, last December, the Government transferred US$109.97 million to the Sovereign Fund, based on LNG revenues received in the Transit Account up to early December.
After discussing the proposed revision of the 2026 PESOE, Parliament will meet again in an Ordinary Session — the fourth of the current 10th Legislature — starting on 28 October (Wednesday). During this session, the Assembly of the Republic plans to discuss a total of 35 items.
Among the items on the agenda, particular attention will be given to the proposed 2027 PESOE, the 2025 General State Account, the annual report of the Ombudsman, the annual report of the Head of State, Government briefings, questions to the Government, and the Sovereign Fund’s report and accounts for 2025.
Source: Carta de Moçambique