The Assembly of the Republic yesterday approved the Economic and Social Plan and State Budget (PESOE) for 2023 with 162 votes in favor from the ruling Frelimo caucus and the opposition's votes against.

"Our economic growth projections for next year are based on a dynamic in the social economic areas, with emphasis on the agricultural, health, social action, tourism and extractive industry sectors, among others," said Adriano Maleiane, prime minister, quoted by the Lusa news agency.

Maleiane is committed to "human capital" and to the "diversification and competitiveness of the economy".

Feliz Sílvia, a member of parliament and spokesman for the ruling party, said that the documents responded to the country's needs, but the opposition disagreed.

The spokesman for Renamo, the main opposition party, said that the PESOE for next year "is not aligned with the country's development plan", especially in the areas of education, agriculture and social action.

Fernando Bismarque, spokesman for the Democratic Movement of Mozambique (MDM), said that the government's proposal "deepens poverty", while remaining an "employment problem" for Mozambicans.

The PESOE 2023 forecasts a reduction in the deficit to 8.7% of Gross Domestic Product, falling to 115 billion meticais, a decrease of 5.2 percentage points compared to this year's estimate.

Reducing the deficit is one of the commitments made by the Mozambican government to the International Monetary Fund (IMF) under the financial assistance program of 470 million dollars (446 million euros) until 2025.

The government's figures for 2023 are based on a growth forecast for the economy (5% more than in 2022) and the impact of tax reforms, all of which are expected to increase state revenues by around 20% - while total expenditure is expected to grow by around 5%.

The State Budget for 2023 amounts to 472 billion meticais and forecasts an inflation rate of 11.5%.

The exploitation of Rovuma gas, off the coast of Cabo Delgado, is expected to contribute around 20 million euros to state revenues. (Lusa)