Cape Verde Reports Q1 Budget Surplus and Debt Reduction
The Cape Verdean government has reported a budget surplus of 0.4% of Gross Domestic Product (GDP) for the first quarter of 2024, signaling a period of steady fiscal stabilization as the country prepares for a major political transition.
Confirming the figures on Saturday, the executive branch characterized the results as a “consolidation of public finances and the reinforcement of budgetary sustainability.” The data highlights a narrowing gap between revenue and spending, with the primary overall balance reaching 0.8% of GDP and the current balance fixed at 1.2%.
Revenue Growth and State Spending
The government attributed the positive balance to a “robust performance” in total revenue, which climbed 8.6%. This growth was primarily fueled by a 12% surge in tax collection. On the other side of the ledger, current expenditures rose by 14.3%. Officials stated this increase reflects a deliberate “strengthening of the essential functions of the State,” including social services and infrastructure.
Public Debt on the Decline
In a significant milestone for the island nation’s economy, the public debt-to-GDP ratio fell to 93.3%. This marks a substantial reduction of 7.9 percentage points compared to the same period last year, indicating a cooling of the debt burden that has long challenged the archipelago.
A Parting Gift from the Outgoing Administration
These financial markers arrive at a historic turning point for Cape Verde. The Movement for Democracy (MpD) government is concluding its two terms in power following last Sunday’s legislative elections. The African Party for the Independence of Cape Verde (PAICV) emerged victorious in the polls and will inherit these improved public accounts as they move to form a new government.
Image: Pexels – Nico Marín
