The Cape Verdean government has announced that the state accounts concluded the first quarter of the year with a budget surplus equivalent to 0.4% of the nation’s Gross Domestic Product (GDP). The executive branch described the quarterly financial results as a clear sign of the ongoing consolidation of public finances and a vital reinforcement of the country’s budgetary sustainability.
According to the official fiscal data, the primary global balance reached 0.8% of GDP, while the current balance settled at 1.2% of GDP. The government highlighted a robust performance in total state revenue, which grew by 8.6%, driven largely by a significant 12% increase in tax collection efficiency.
Concurrently, current expenditures saw a 14.3% expansion, which the outgoing administration attributed to the deliberate reinforcement of the state’s essential public functions and social services.
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The report also revealed an improvement in the country’s macroeconomic stability indicators, with Cape Verde’s total public debt dropping to 93.3% of GDP. This milestone represents a substantial reduction of 7.9 percentage points compared to the same period last year.
The publication of these financial results arrives during a major political transition for the archipelago. The ruling Movement for Democracy (MpD) government is currently wrapping up its final weeks in office after completing two consecutive legislative mandates, following the African Party for the Independence of Cape Verde’s (PAICV) victory in Sunday’s national legislative elections.
