Mozambique’s state revenue, in 2027, is projected to reach 427.8 billion meticais (6.7 billion US dollars at the current exchange rate) within a macroeconomic framework pointing to an average annual inflation rate of 7 percent and real Gross Domestic Product (GDP) growth of 1.6 percent.
According to the proposed Economic and Social Plan and State Budget (PESOE) for 2027, approved on Tuesday by the Council of Ministers (cabinet), the projected revenue represents 23.5 percent of GDP. Of this amount, 3,071.6 million meticais is expected to come from liquefied natural gas (LNG) operations.
Speaking to reporters, the government spokesperson and minister of state administration Inocêncio Impissa, explained that the 2027 budget envisages a total resource envelope of 511.2 billion meticais, a figure that also corresponds to total planned expenditure, equivalent to 28.1 percent of GDP. Compared to the 2026 PESOE Law, total expenditure represents a nominal reduction of approximately 1.8 percent.
Regarding public finances, he said, the government plans to reduce the budget deficit to 4.6 percent of GDP by 2027, as part of a fiscal consolidation strategy aimed at preserving the medium-term sustainability of public accounts.
The budgetary strategy also includes limiting reliance on domestic borrowing to 1.9 percent of GDP, a measure that aligns with efforts to maintain macroeconomic stability and ensure sustainable public finance management.
“The PESOE 2027 proposal seeks to balance the continued performance of essential State functions with expenditure restraint and strengthened budgetary discipline, against a backdrop of projected economic growth of 1.6 percent. Reducing average annual inflation to seven percent is another key indicator in the macroeconomic scenario, reflecting the official expectation that the broad-based rise in prices will slow down throughout 2027”, he said.
Regarding investment, the budget proposal allocates 79.6 billion meticais, with 31.1 billion meticais to be funded by domestic resources and 48.1 billion by external resources.
According to the government, “the PESOE 2027 is grounded in improving the population’s well-being through the coordination of sectoral planning and budget execution.”
The bill approved by the Council of Ministers will be submitted to the Assembly of the Republic, the country’s parliament, which will be responsible for reviewing this economic and budgetary planning instrument for 2027.
Source: AIM