Mozambique is forecasting a budget deficit of $1.9 billion for 2025 as public debt rises to 76.9 percent of gross domestic product (GDP), according to government estimates released on Tuesday.
The Economic and Social Plan and State Budget (PESOE) 2025 outlines a total national budget of approximately 512.7 billion meticais (about $8 billion), with projected state revenue of nearly 386 billion meticais, leaving a significant funding gap of 126.8 billion meticais.
Speaking after a Council of Ministers meeting in Maputo, government spokesperson and State Administration Minister Inocencio Impissa said the macroeconomic policy assumptions behind the budget include a 2.9 percent GDP growth projection for 2025.
He told journalists that the government remained committed to fiscal consolidation to correct structural deficits and stabilise public debt.
The government’s public debt report revealed that the country’s debt stock and guarantees now total 1.1 trillion meticais.
PESOE 2025 is structured around five key pillars: national unity and governance, economic transformation, social development, infrastructure planning, and environmental sustainability, reflecting Mozambique’s broader policy priorities.
JN/APA