Government to Collect 360 Billion Meticals Revenue in 2023

The Government plans to collect, in revenue for the State coffers, about 360 billion meticais in 2023, corresponding to 27% of the Gross Domestic Product (GDP), which represents an increase of 0.9% compared to 2022.

On the other hand, the government will spend more than it plans to produce, since, according to the draft State Economic Social Plan and Budget (PESOE) for 2023, State expenditure will be 472 billion meticais, equivalent to 35.8% of GDP. This corresponds to a decrease of 4.3% in relation to 2022, which creates a budget deficit of 115 billion meticais, equivalent to 8.7% of GDP.

The PESOE for 2023 details that revenue collection for the State should reach the amount of 360 billion meticais, which will result from the contribution of current and capital revenues, which are forecast to be 344 billion and 13 billion meticais in 2023, respectively.

The Plan specifies that, of the amount forecast for State revenue, 1.2 billion meticais are revenue from natural gas from Area 4 of the Rovuma Basin.

“With regard to tax revenues, the amount of 286.6 billion meticais is forecast, corresponding to the increase of 1 percentage point (pp) of GDP compared to the PESOE 2022 law, justified essentially by the Income Tax item which should reach approximately 132.8 billion meticais, equivalent to 10% of GDP.

With regard to the item of revenues on goods and services, it is estimated that 2023 will see the collection of 137.6 billion meticais, equivalent to 10.4% of GDP, representing an increase of 0.8 percentage points compared to the PESOE 2022 law,” the document states.

In terms of revenues from goods and services, they represent around half of the tax portfolio. Implementation of tax reforms, including reform of the Value Added Tax and Excise Tax Codes and revision of the customs tariff, will also have a positive impact on revenues, generating gains of around 21.5 billion meticais, equivalent to 16 percent of projected revenues for 2023.

In turn, it is estimated that the other tax levies will generate 16 billion meticais, equivalent to 1.2% of GDP, or 0.3% more than the target set in the PESOE 2022.

“With regard to the aggregate of non-tax revenues, including own revenues, an amount of 28.8 billion meticais is forecast, equivalent to 2.2% of GDP, which in comparison to the PESOE 2022 law represents an increase of 0.2 pp,” the document reads.