Cape Verde’s 2009 budget performance “positive overall”

10 May 2010

Praia, Cape Verde, 10 May – The Budget Support Group (BSG) considers that Cape Verde’s budget performance in 2009 was “positive overall”, especially regarding good governance, the group’s coordinator stated in Praia.

The BSG coordinator and Portugal’s ambassador in Cape Verde, Graça Andresen Guimarães, stressed that “significant progress” had been made with respect to good governance, in both state reform and implementation of the monitoring and evaluation system.

The Portuguese diplomat took over coordination of the group last Monday from Spain. She spoke with Portuguese news agency Lusa on Friday after the final session of five days of BSG work with the Cape Verdean Finance Ministry.

Besides Portugal, the BSG includes evaluators from Austria, Spain and the Netherlands, and from the European Union, World Bank, International Monetary Fund and African Development Bank. They meet on a half-yearly basis in Praia.

In the macroeconomic area, Andresen Guimarães said the BSG congratulated the government of Jose Maria Neves for the “policy options adopted” in 2009, which allowed Cape Verde to “remain on the path of growth during a complicated year”.

She nevertheless indicated that the BSG had advised Cape Verdean authorities to continue acting cautiously, especially regarding the budget deficit, which in the 2010 state budget stood at around 12 percent.

Cape Verdean Finance Minister Cristina Duarte said not all had run smoothly, recalling adjustments made in 2009 to sustain the budget deficit, which was 4.7 percent at the start but eventually slid to 5.8 percent.

The 2010 state budget was approved by the Cape Verdean parliament in December 2009 and envisages revenues of 44 billion escudos (399 million euros) and spending of 61 billion escudos (553.2 million euros). (macauhub)