Cape Verde approves “expansionist” budget with 31 pct increase in investment

11 May 2006

Praia, Cape Verde, 11 May – the Cape Verde government approved Wednesday the State Budget for this year, a document described by the government as being “expansionist” and which outlines a 31 percent increase in investment.

The new budget of José Maria das Neves’ government, which was approved in a Cabinet Meeting, outlines investments of US$175.3 million, an increase of US$53 million on last year.

In total, Cape Verde plans to spend US$470 million, of which US$292.9 million will be on day to day expenditures and the remainder on other applications.

The budget is based on a gross domestic product (GDP) growth forecast of 6.5 percent, lower than that projected recently by the International Monetary Fund (IMF), which pointed to GDP growth of 7 percent for 2006.

Inflation on the archipelago is expected to reach 3 percent this year, an increase of 2.6 percentage points on last year.

The government acknowledges that fuel costs, which are currently high on the international market, are the main risk factor for this year’s budget, according to daily newspaper A Semana.

The final version of the state budget for this year will be handed to the president of the Cape Verde parliament, Aristides Lima Monday.

the diploma will be discussed in Parliament in June and is expected to be implemented in July, according to the cape Verde government. (macauhub)