The Cape Verdean government submitted its proposed State Budget (OE) for 2027 to parliament on Thursday, valuing total expenditure at CVE 101.7 billion (€923.4 million) — a document the government describes as sitting between “caution” and “transformation”.
“It is certainly a cautious budget, but it also aims to make an effort to ensure that Cape Verdeans feel change and transformation,” said Minister of Justice and Presidency of the Council of Ministers Clóvis Silva. He explained that the cautious stance is linked, among other factors, to fluctuations in fuel prices on international markets.
Of the total CVE 101.7 billion in projected expenditure, CVE 1.2 billion (approximately €10.9 million) has been earmarked to mitigate the impact of potential energy price increases on households.
“We believe things will improve, but if they do not, we will reinforce other budget lines,” said Secretary of State for Finance Maria José Lopes.
Cabo Verde is currently executing a supplementary budget promulgated in August, valued at €942 million, which already incorporates measures designed to respond to rising prices. At the formal handover of the 2027 budget proposal to parliament, Clóvis Silva said the document seeks to combine fiscal prudence with measures aimed at producing tangible change in the lives of Cape Verdeans.
Among the stated priorities are inter-island transport links. “From January this will be materialised with boat tickets at €4.53 and plane tickets at €45.34,” the minister said, referring to fares of CVE 500 for maritime connections and CVE 5,000 for air routes.
“An effort is also being made to ensure that free healthcare is increasingly felt,” he added, also citing budget measures with impact on education and public sector careers.
According to the Ministry of Finance, the proposal is aligned with the priorities of the Government Programme for the XI Legislature, entitled “Cabo Verde for All”, which sets out the governance framework for the 2026–2031 period.
The macroeconomic projections embedded in the budget point to real GDP growth of 5.6%, average annual inflation of 2%, a fiscal deficit equivalent to 1% of GDP, and public debt of 90.9% of GDP.
The government said these indicators reflect an orientation towards the consolidation of public finances and responsible resource management.
“Cabo Verde is executing a supplementary budget, promulgated in August, worth €942 million, which already includes mitigation measures.”
The document rests on “four pillars: access and connectivity, social cohesion and protection, sustainability and good governance, and security and resilience.” The energy and digital transition, the development of the blue economy, and attention to the effects of climate change are also among the priorities, within a broader objective of inclusive growth.
“The proposal is presented in an international context marked by economic and geopolitical uncertainties, the reconfiguration of global value chains, and tensions in energy and financial markets,” the government said in a statement.
In response to this environment, the government said it “maintains an orientation grounded in macroeconomic stability, the sustainability of public finances, and the strengthening of the resilience of the Cape Verdean economy”.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/10/02/mundo/africa/cabo-verde-governo-entrega-proposta-de-oe-2027-ao-parlamento/
