Mozambique's Assembly of the Republic convenes on Saturday, 24 October, in Maputo for an extraordinary session to consider and vote on a proposed amendment to the 2026 State Budget, which adds €47.4 million in gas revenues and increases public expenditure, according to Lusa.

The proposal is assured of passage through the parliamentary majority held by the Frente de Libertação de Moçambique (Frelimo) and seeks to amend two articles of the law that approved, last December, the Economic and Social Plan and State Budget (PESOE) for 2026, covering revenues and expenditures.

On 26 May, the Government approved the revision of the 2026 State Budget at a Council of Ministers meeting.

"The amendment aims to reinforce the allocation earmarked for domestic public investment, contributing to the mitigation of the fiscal impacts arising from natural calamities and external shocks, as well as ensuring the sustainability of public finances," the Council of Ministers spokesperson, Inocêncio Impissa, announced at the time.

Impissa added that the amendment would "proceed with the increase of internal resources resulting from the recording of carried-over balances from oil and gas revenues" worth approximately €50 million, and, "simultaneously," the "adjustment of public expenditure as a result of the increase in the domestic component of investment."

As a result of these changes, the internal resources of the 2026 PESOE rise from €5.9 billion, as approved in the December budget, to €6 billion, equivalent to 27.3% of gross domestic product (GDP).

"This amount is strategically channelled towards the financing of priority actions included in the recovery and reconstruction plan, in consequence of the destruction caused by the illegal post-electoral protests of 2024-25, and the construction and rehabilitation of infrastructure following recent floods approved by the Government, ensuring a swift, effective response aligned with the urgent needs to restore and strengthen the country's socioeconomic resilience," Impissa explained.

Following the revision, according to the Government's proposal, public expenditure rises from €7 billion to €7.06 billion, equivalent to 32.1% of GDP.

Gas Projects in Mozambique

Mozambique has three approved mega-projects for the production of liquefied natural gas (LNG) from reserves in the Rovuma Basin, off the coast of Cabo Delgado, which are classified among the largest in the world.

One of these projects belongs to TotalEnergies and another to ExxonMobil, with a combined capacity of 18 million tonnes per year (mtpa) and an investment of €26.1 billion, which is still awaiting a final investment decision. Both are located at Afungi.

The third is the project operated by Italy's Eni, which has been producing approximately seven million tonnes per year since 2022 via the Coral Sul floating platform, whose capacity is set to be doubled from 2028 with the Coral Norte platform, representing an investment of €6.2 billion.

Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=555190