Mozambique's Parliament Approves Increase in Public Spending for 2026

The proposal received final parliamentary approval during an extraordinary session, with 164 votes in favour from Frelimo and 62 votes against from the opposition parties Renamo, the Mozambique Democratic Movement (MDM) and the Optimistic People for the Development of Mozambique (Podemos).

Under the revised budget, the State's domestic resources will increase from 442.9 billion to 446.5 billion meticais, equivalent to 27.3% of Gross Domestic Product (GDP). Public expenditure will rise by approximately 3.6 billion meticais, bringing total spending to 32.1% of GDP.

The budget adjustment results from the incorporation of 3.574 billion meticais in carried-over natural gas revenues. According to Frelimo, these additional resources will strengthen the Government's financial capacity to address the population's priority needs.

Frelimo parliamentarian Faisal António defended the revision, arguing that it provides an opportunity to transform natural resource revenues into tangible benefits for citizens, particularly through the reconstruction of infrastructure damaged by floods, the rehabilitation of roads, schools and healthcare facilities, support for agriculture and the restoration of essential public services.

However, opposition parties criticised the proposal, arguing that the revision comes too late in the financial year and fails to address the main challenges facing the population.

MDM parliamentarian Judite Macuácua described the initiative as evidence of the Government's shortcomings in budget planning and implementation. She argued that the remaining two months of the year would be insufficient to carry out the proposed activities, particularly given the time required for public procurement procedures.

Renamo, meanwhile, maintained that the available funds should primarily be used to settle outstanding government debts, including unpaid overtime allowances for teachers and overdue payments to contractors and suppliers of goods and services.

"We voted against because we believe that if the Government has money available, it should first pay outstanding overtime allowances to teachers, contractors and other suppliers of goods and services who have been waiting for years to receive their payments," said Renamo parliamentarian Glória Salvador.

Podemos also rejected the revision, questioning the urgency of amending the budget with only two months remaining before the end of the financial year. Parliamentarian Zainaba Andala argued that the proposal offered insufficient guarantees for improving public services, particularly in the health and education sectors.

The budget revision comes as Mozambique seeks to increase the economic benefits generated by natural gas reserves in the Rovuma Basin, located in the northern province of Cabo Delgado.

The country has three major liquefied natural gas projects involving the multinational companies TotalEnergies, ExxonMobil and Eni. The Italian energy company Eni began production in 2022 through its Coral Sul floating platform, with plans to expand production capacity through the Coral Norte platform, expected to become operational from 2028.

Parliamentary approval allows the Government to formally incorporate the additional revenues and adjust planned expenditure for the final months of 2026, despite concerns raised by opposition parties regarding the authorities' ability to effectively implement the revised budget.