Cape Verde’s 2013 budget with 20 million euros less assistance

18 November 2013

Budget support for Cape Verde will this year be reduced by 20 million euros, nearly 45 percent of the disbursement negotiated with the island country’s Budget Support Group (BSG), Finance Minister Cristina Duarte said.

Summarising the BSG’s second annual mission, Duarte said that planned state budget assistance provided by Spain and the World Bank would not take place.

Spain and the World Bank are both members of the BSG, which also includes the African Development Bank (AfDB), the European Union (EU), Luxembourg and Portugal.

Regarding sustainability of the country’s indebtedness, Duarte indicated that Cape Verde remains within the sustainable limits and parameters.

The deficit and the public debt do not yet represent public accounts slippage, but rather resulted from “economic policy and public policy options decided by the government in 2006-2007 and which have been applied with some consistency,” in Cape Verde, the Finance Minister stated.

The World Bank’s director for West Africa, Vera Songwe, who took part in that mission to assess Cape Verde’s fiscal and macroeconomic stability, said that the country’s government should adopt measures to achieve “more efficient tax collecting, control of public spending and gradual deceleration of the public investment programme”. (macauhub)