Maputo, May 5, 2025 (Lusa) - Mozambique plans to spend €2.85 billion on civil service salaries in 2025, up 1.3% in a year, but according to the budget proposal, the government will limit each new hire to three departures.
According to the proposal for the 2025 Economic and Social Plan and State Budget (PESOE), which begins to be analysed in the specialised committees of the Parliament in Maputo on Monday, the total cost of salaries and wages amounted to 202,859 million meticais (€2.811 billion) last year and is expected to grow to 205,550 million meticais (€2,850 billion) this year, equivalent to 13.3% of the estimated Gross Domestic Product (GDP).
On 21 February, Lusa reported that Mozambique's government spending on wages and salaries was expected to grow by 40% in 2024, compared to the previous year, according to government figures, which last June estimated the total number of civil servants and state agents in Mozambique at 370,000.
"As part of the rationalisation of public spending, the commitment to contain spending on salaries and wages and to stabilise public debt, which have been the main aggregates putting the greatest pressure on the State Budget," reads the 2025 budget document.
It added that "to ensure the containment of the wage bill in the short term and provide a sustainable trajectory in the medium term, restrictions on new admissions will be reinforced," as well as "re-evaluating the allowances granted" to State Officials and Agents (SAEs), "and implementing measures to strengthen the control of the Public Administration's human resources."
"Public expenditure as a percentage of GDP is expected to fall to 30.7% in 2027, from around 33.2% of GDP in 2024, in line with fiscal consolidation objectives. In the medium term, the burden of operating expenses, particularly wages and salaries, pensions and debt servicing, will continue to represent a significant challenge for the sustainability of public finances," acknowledged the government in the budget proposal, the first prepared by the government led by Daniel Chapo, sworn in as Mozambique's fifth president last January.
To "reduce personnel expenditure from 15% to 13.7% of GDP in the medium term", the government commits in the PESOE to carrying out an audit and proof of life, "with a specific focus on verifying and validating the Salaries and Remuneration sheet", as well as reviewing and "improving" the current allowances, "such as location allowances and seniority allowances, to adjust the actual responsibilities and categories and use them more effectively as incentives".
To "ensure the rationalisation of the workforce in the public sector", the government defines that "new hires must comply" with the rule of "admitting one employee for every three employees who leave the public administration".
In the PESOE, Mozambique's government forecasts GDP growth of 2.9% in 2025, an average annual inflation rate of 7%, exports of goods worth 8,431 million dollars (€7.38 billion) and Gross International Reserves of 3,442 million dollars (€3.045 billion), equivalent to 4.7 months of coverage of imports of goods and services, excluding megaprojects.
State revenue for the whole year should amount to more than 385,871 million meticais (€5.347 billion), equivalent to 25% of GDP, and total expenditure to 512,749 million meticais (€7.107 billion), corresponding to 33.2% of GDP. This generates a budget deficit of 8.2%, equivalent to 126,878 million meticais (€1.759 billion), financed in particular by issuing public debt.
PVJ/ADB // ADB.
Lusa
