The Cape Verdean government will this Wednesday discuss the state budget for 2024, calculated on the basis of a conservative economic growth outlook.
It is “very risky” to make forecasts that could imply increases in revenue and spending, explained Olavo Correia, deputy prime minister and finance minister, when he presented the documents a month ago.
The war in Ukraine (and now between Israel and Hamas) and climate change are two uncertainties that cause the document to point to economic growth of 4.7%, below the 5.7% forecast for this year.
OE for 2024 will be around 86 billion escudos (782 million euros), 10% more than this year.
During the presentation of the document, “stability” was one of the words repeated by the minister as a pillar of government policy, along with reforms aimed at digital and environmentally sustainable transformation to attract investment, and a third pillar that involves “protecting the most vulnerable.”
The ruling party has a majority in parliament.
The Movement for Democracy (MpD) has 38 deputies, compared with 30 deputies from the African Party for the Independence of Cape Verde (PAICV) and four from the Union Independent and Democratic of Cape Verde (UCID).
PAICV announced that it would offer a salary increase to all workers and an exemption from the single income tax of up to 50 thousand escudos, considering the government’s proposal unrealistic.
The Independent and Democratic Union of Cape Verde (UCID), the third parliamentary force, viewed OE 2024 as a “fictitious scenario” but admitted to giving “positive support”, depending on whether some of its proposals for this specialty are approved.