Cape Verde Approves 2026 Revised Budget for Social Spending
Cape Verde’s parliament approved a revised 2026 state budget in its general terms on Thursday, following a heated debate marked by sharp criticism from the opposition and a total realignment of public spending by the new administration.
PAICV Majority Secures Passage
The revised budget proposal passed with 37 votes in favor from the ruling African Party for the Independence of Cape Verde (PAICV). The Movement for Democracy (MpD), now the largest opposition party, cast 28 votes against the measure, while the Independent and Democratic Cape Verdean Union (UCID) contributed two abstentions.
The budget revision became a necessity after the PAICV took office in June following victory in the May legislative elections. Prime Minister Francisco Carvalho revealed that while the previous MpD administration had initially set the 2026 budget at 95.7 billion escudos (€868 million), projected execution had already ballooned to 104 billion escudos (€943 million) by the time the new government assumed control.
Shifting Priorities Toward Social Welfare
The new Rectifying Budget, set at 103.9 billion escudos (€942 million), slightly trims overall expenditure while drastically reallocating funds toward social sectors. The PAICV government framed the document as an “instrument of responsibility” to align public accounts with the nation’s current social and economic realities.
Key highlights of the funding reallocation include:
- Education: An additional 139 million escudos for preschool through higher education, including funding for free tuition for the first cycle of public university.
- Healthcare: A 300 million escudo boost for essential medicines, specifically targeting cancer treatments and kidney transplants. The government also launched the “Health for All” program with a 100 million escudo initial investment.
- Social Safety Nets: A 50 million escudo increase in benefits for vulnerable families.
- Connectivity: 450 million escudos to maintain vital air links between Cape Verde, the United States, and Brazil.
Opposition Voices Skepticism
Despite the focus on social spending, opposition leaders expressed deep reservations. UCID deputy João Santos Luís justified his party’s abstention by accusing the Prime Minister of ignoring legislative inquiries and failing to offer a “transformative strategy.” He argued that the government is simply managing the existing model rather than innovating a new development path.
MpD deputy Abraão Vicente clarified that his party’s “no” vote was not a rejection of the country, but a protest against a “lack of transparency” regarding budget increases for certain government structures.
Conversely, PAICV deputy João Brito defended the proposal, stating it fulfills the expectations of Cape Verdeans who voted for change. “Today we debated a political decision regarding the State’s capacity to respond to new demands and begin building a Cape Verde for all,” Brito said.
The budget also maintains a 1.7 billion escudo subsidy package to mitigate rising fuel costs for utility companies and the private sector.
Image: Pexels – damien Saillet
