Africa-Press – Cape verde. The Public Finance Council (CFP) recommends that the Government reinforce measures to respect public debt limits and rationalize expenses to alleviate pressure on revenues and maintain budget balance.
These recommendations are contained in the report on the State Budget for 2024 (OE’ 2024) approved by the National Assembly, and which falls within the scope of the CFP’s competencies with regard to assessing compliance with budgetary rules.
After analyzing the document, the Council concluded that, despite extensive discussion in the National Assembly, the final proposal for OE’2024 did not change in its essence nor were there any changes that would put the budgetary principles and rules at risk.
“There was a slight reduction in the personnel item and an increase in transfers. However, it is recommended to improve the adequacy of the State Budget to the rules and principles established by law”, states the document.
However, this entity recommended the rationalization of expenses as a way of relieving pressure on revenues and maintaining budgetary balance, the reinforcement of measures to respect the limits of public debt and interest expenditure and the reinforcement of measures so that consolidation budget depends less on tax revenue and more on expenditure management.
He also advised the Executive to reinforce measures to reduce the growth of current expenditure and measures to increase the efficiency of public expenditure.
The Public Finance Council (CFP), an independent and recently created body, has the mission and powers to verify the compliance of the budget proposal with the budgetary rules and principles stipulated in the Budgetary Framework Law.
To this end, it issues two opinions, one on the consistency of macroeconomic projections (Opinion no. 01/2023) and the other on the budget itself (Report no. 01/2023).
The OE’2024 foresees the growth of the Cape Verdean economy in 2024 between 4.7 and 5%, inflation at around 3%, a public deficit at 2.9% and public debt at 110% of the Gross Domestic Product (GDP ).
The bill approving the State Budget for the economic year 2024 (OE’2024) was approved on December 24th, with 36 votes in favor from the MpD, and 24 votes against, 21 from the PAICV and three from the UCID.
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