Africa-Press – Cape verde. The African Party for the Independence of Cape Verde (PAICV, Opposition) considered this Friday that the State Budget (OE) for 2023 “does not present any major public investment program ” and will not solve “the serious problems ” that the country faces in the fields of transport and public safety and , much less , in improving the purchasing power of Cape Verdeans .
“We therefore have a Budget that neither corresponds to expectations, nor does it help Cape Verdeans to face the difficult moment due to the continued and rampant increase in the cost of living”, warned Julião Varela, deputy and Secretary General of the PAICV, during a press conference to react to the OE proposal for 2023 recently delivered by the Government to Parliament.
“We are facing a budget that, as a result of poor governance, is drawn up within a framework of imposition and adjustment that derives from the agreement signed with the International Monetary Fund (IMF”), regretted Julião Varela, recalling that “all the countries with which we like to compare have been taking measures to increase income and reduce the tax burden for families and companies”
In addition to warning of the “expressive increase in the public debt”, Julião Varela, on the other hand, said that the budget proposal for 2023 increases expenses, namely with travel and stays, whose budgeted amount increased from 609 thousand escudos to 794 thousand contos, that is, an increase of 185 thousand contos.
OE 2023 should focus more on people
For the PAICV, similarly to what happens in other countries, the OE for 2023 should focus more on people, taking into account that last year there was a “significant increase in the tax burden with the import duty increasing by 5 % for more than two thousand products, increase in the price of energy, water, transport, basic necessities”.
The largest opposition party considers that there are conditions for the OE for 2023 to be more solidary as “total revenues, including sales of non-financial assets, increase by about 18.3% in relation to the reprogrammed budget for the year 2022”. ”.
As factors favorable to a more people-centered budget, Julião Varela, underlines that the budget proposal for 2023 itself includes, among other things, forecasts for an increase in total revenues, including sales of non-financial assets, the growth of revenues in terms of tax on goods and services as well as an increase in tax revenue.
“Inexpressive” salary increases
The proposals presented by the Government in terms of salary also deserve criticism from the largest opposition party.
“These are insignificant increases that are very far from the current inflation rate, which is currently around 8% and which leaves out all those who have a salary above 69 thousand escudos”, noted Julião Varela, adding that “the increased minimum wage is for others to apply, that is, the Government decrees and those who have to assume are the micro and small companies and families”.
tax increase
The PAICV Secretary General considers that the OE for 2023 “continues to be taxed”. In this sense, Julião Varela pointed out, among others, that “it increases the tourist tax to 275$00 without worrying about safeguarding the necessary tourist competitiveness of the country, it increases the tobacco tax by another 20$00; the 5% increase in the import duty on more than 2000 products remains, including foodstuffs, medicines, building materials, etc. Km fixed at 100 contos for each vehicle”.
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