Cape Verde PAICV Cites Ministry Data for €72.6M Budget Gap
The African Party for the Independence of Cape Verde (PAICV) has clarified that a substantial €72.6 million “slippage” in the national budget is backed by internal Ministry of Finance data, rather than an assessment by the International Monetary Fund (IMF).
Internal Data vs. IMF Missions
Carla Lima, the parliamentary leader of the governing PAICV, addressed the issue in Praia following a meeting with the IMF’s resident representative. She emphasized that the discrepancy was identified by comparing current budget execution figures against the projections set in the 2026 State Budget, both of which are available via the Ministry of Finance’s quarterly reports.
“The data proving the slippage comes from the Ministry of Finance,” Lima stated. “If you look at the quarterly accounts on the Ministry’s website, you can see the reprogramming relative to the State Budget. This is not a matter for the IMF at this time because it is already proven by government documents.”
The clarification follows a statement from the IMF earlier this week, in which the organization noted it had not assessed budget execution during its technical mission in July due to a lack of available data. This seemingly contradicted Prime Minister Francisco Carvalho, who previously claimed the IMF mission had helped identify the €72.6 million gap.
A Political Battle Over the Books
The budget controversy has sparked a fierce exchange between the current government and the opposition Movement for Democracy (MpD). Prime Minister Carvalho has accused the previous MpD administration of “manipulating” accounts and “misleading” international partners.
According to the Prime Minister, total execution spending hit 104.011 billion escudos (approximately €943 million), significantly exceeding the 95.675 billion escudos (€868 million) originally projected in December 2025.
The MpD has hit back, with parliamentary leader Luís Carlos Silva calling the Prime Minister’s accusations “irresponsible” and “false.” Silva warned that such rhetoric could damage Cape Verde’s international reputation, noting that the country has an impeccable record of meeting its foreign debt obligations.
Stability Amidst Scrutiny
Despite the domestic political friction, PAICV leadership insists that Cape Verde’s relationship with the IMF remains on solid ground. “The IMF has been in Cape Verde for a long time; it is a relationship of many years. I do not believe this could jeopardize that relationship,” Lima said.
Rodrigo García-Verdú, the IMF resident representative, reaffirmed the institution’s neutrality and confirmed that the Cape Verdean executive is currently meeting the schedules for ongoing programs. A more formal analysis of the country’s accounts is expected when the next IMF mission visits in December.
Image: Pexels – Nikolay Demirev
