Cabo Verde fiscal council urges tighter government spending controls

Cabo Verde’s Public Finance Council (CFP) has urged the government to implement stricter controls over spending following the release of its budget execution monitoring report for the first half of 2026. The council recommended improved monitoring of public investment, revenues, and debt management, noting that while revenue is growing, expenditure is accelerating at a faster rate. The CFP highlighted an estimated financing need of approximately five million euros and warned that the budget balance, while currently positive, has a reduced margin.

The fiscal recommendations follow a recent change in government, where the African Party for the Independence of Cabo Verde (PAICV) took power from the Movement for Democracy (MpD) after the May elections. A supplementary budget approved in July reallocated funds toward social spending, a move the CFP noted significantly modified the initial framework.

While the economy remains on a favorable trajectory, the council cautioned that it is vulnerable to external shocks due to a high dependence on tourism and imports. Additionally, observers note that while Cabo Verde maintains a record of political stability and peaceful power transfers, the efficiency of its judiciary remains a point of interest for contractual predictability.