Reducing public spending and increase tax revenues are amongst the measures announced by the Cabo Verde (Cape Verde) Finance Minister to bring an end to the budget deficit, which currently stands at between 5% and 7% of gross domestic product (GDP), according to the Cape Verdean press.
Cabo Verde collects around 34 billion escudos in taxes (20% of GDP), but spends 60 billion escudos, leading to a deficit that, even after capital and current revenues, totals between 5% and 7% of GDP.
Cited by Cape Verdean weekly newspaper A Semana, Minister Olavo Correia said the situation had to be resolved by making use of internal resources, which involves reducing public spending and increasing tax revenues.
To change this situation the minister noted there were nine priorities that were a “tender document” for the new team at the National State Revenue Directorate.
Cabo Verde’s public debt at the end of 2015 totalled 123% of GDP following continued growth since 2008 when debt totalled 54.28% of GDP. (macauhub/CV)