See more BNEWS on Google
Public-sector salaries and debt servicing could absorb around 96% of Mozambique’s tax revenue in 2027, leaving the State with the equivalent of just four meticais out of every 100 collected to finance other expenditures.
The warning is contained in the 2027 Fiscal Risks Report, prepared by the Ministry of Finance, which points to growing pressure on public finances and a shrinking margin for investment, the purchase of goods and services, transfers and emergency response.
According to the projections, the public-sector wage bill is expected to account for 65.3% of tax revenue in 2027, while debt servicing is projected to absorb another 30.7%.
Combined, the two components represent approximately 96% of the tax revenue expected for that year.
In practical terms, for every 100 meticais collected in taxes, around 96 could already be committed to salaries and debt, leaving only four meticais for other State needs.
The Ministry of Finance says this scenario reflects a high degree of budget rigidity, reducing the Government’s ability to respond to economic shocks, finance public investment or accommodate unexpected expenditure.
The projections also point to still-limited economic growth. After a contraction of 0.2% in 2025, the economy is expected to grow by 0.6% in 2026 and 1.54% in 2027 under the baseline scenario.
Under a moderate-risk scenario, growth in 2027 could fall to 0.29%, while in an extreme scenario the economy could contract by 0.52%.
The report also identifies the volatility of international oil prices, geopolitical tensions, inflation, pressure on the foreign-exchange market, possible delays in natural gas projects, the situation at Mozal and persistent insecurity in Cabo Delgado as key risks.
The Government also warns of the economy’s growing dependence on gas projects.
According to the projections, the economy could grow by 9.5% in 2029 with the contribution of those projects, but by only 3.7% without gas.
On the foreign-exchange front, the Ministry of Finance estimates that a 20% depreciation of the metical could increase external debt by around eight percentage points of Gross Domestic Product and raise debt servicing costs by approximately 12.5 billion meticais.
The 2027 Fiscal Risks Report concludes that Mozambique’s public finances remain exposed to several risks, including high indebtedness, exchange-rate shocks, natural disasters and financial weaknesses in State-owned enterprises.
The National Institute of Meteorology (INAM) has issued a strong wind warning for southern Mozambique, with particular focus on Maputo City, Maputo Province and southern Gaza.
The Municipality of Marracuene has denied reports circulating on social media claiming that around 20 people drowned at Macaneta Beach during the large turnout recorded on Friday.
The Governor of Gaza Province, Alfeu Constantino Cuna, has called for greater rigour, transparency and control in the management of schools, while also advocating for more efficient use of available teachers amid a shortage of teaching staff.
The Mozambican Government intends to gradually reduce and eliminate the use of mercury in artisanal gold mining, while also seeking to formalise thousands of miners who currently operate outside the legal system.
Choose BNEWS as a preferred source and see more of our reporting when you search on Google.
The National Alliance for a Free and Autonomous Mozambique (Anamola) is holding its National Council meeting this Saturday, September 26, in Maputo, to assess its first year of activity and define priorities for the party’s next phase of organisation.
The Brazilian Government has decided to ban fixed-odds betting platforms, known as “bets”, and has set a timetable for removing websites and apps operating in the country. The measure was formalised through a Provisional Measure signed by President Luiz Inácio Lula da Silva.
The Mozambican Government has accepted 284 of the 292 recommendations presented under the fourth cycle of the United Nations Universal Periodic Review, committing to measures aimed at strengthening the protection of human rights in the country.
Mozambican driver Kayo Cêra, 13, claimed his fourth consecutive victory in the CKA Karting Championship, in the Junior Max class, after winning the fourth round held at the Automóvel & Touring Clube de Moçambique karting circuit.
